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Calculation statement labels T5 and G

Last updated 17 January 2023

Instructions to complete the labels T5 and G of the calculation statement.

T5 – Tax payable

Complete T5 as it is mandatory.

Write at T5 the amount of tax payable after F has been offset against T4.

Work out the amount at T5 as follows:

  • If the amount at F is less than the amount at T4                
    • take F away from T4
    • write the result at T5.
  • If the amount at F is more than or equal to the amount at T4                
    • write zero at T5
    • the difference between T4 and F (take T4 away from F) may be carried forward to a later income year.

T5 cannot be less than zero. Include an amount even if it is zero (if zero write 0).

Example 20a

Dark Red Co. Pty Ltd, a base rate entity has the following amounts entered into its company tax return:

Tax return information

Label

Description

Amount

A

Taxable income

$42,000

B

Gross tax (25%)

$10,500

C

Non-refundable non-carry forward tax offset

$3,000

T2

Subtotal 1

$7,500

D

Non-refundable carry forward tax offset

$3,000

T3

Subtotal 2

$4,500

E

Refundable tax offset

$3,000

T4

Subtotal 3

$1,500

F

Franking deficit tax offset

$1,000

T5

TAX PAYABLE

$500

I

Tax offset refunds (remainder of refundable tax offsets)

$0

S

Amount due or refundable

$500

The lower company tax rate of 25% has been applied in this example.

Dark Red Co. Pty Ltd has an entitlement of $3,000 of non-refundable non-carry forward tax offset, $3,000 of non-refundable carry forward tax offset, $3,000 of refundable tax offset and $1,000 of franking deficit tax offset to be used to offset against $10,500 gross tax.

  • Tax payable has been reduced to $500.
  • I must show $0.
End of example

 

Example 20b

Light Red Co. Pty Ltd, a base rate entity, has the following amounts entered into its company tax return:

Tax return information

Label

Description

Amount

A

Taxable income

$42,000

B

Gross tax (25%)

$10,500

C

Non-refundable non-carry forward tax offset

$3,000

T2

Subtotal 1

$7,500

D

Non-refundable carry forward tax offset

$3,000

T3

Subtotal 2

$4,500

E

Refundable tax offset

$3,000

T4

Subtotal 3

$1,500

F

Franking deficit tax offset

$4,000

T5

TAX PAYABLE

$0

I

Tax offset refunds (remainder of refundable tax offsets)

$0

S

Amount due or refundable

$0

The lower company tax rate of 25% has been applied in this example.

Light Red Co. Pty Ltd has an entitlement of $3,000 of non-refundable non-carry forward tax offset, $3,000 of non-refundable carry forward tax offset, $3,000 of refundable tax offset and $4,000 of franking deficit tax offset to be used to offset against $10,500 gross tax.

  • Tax payable has been reduced to $0.
  • I must show $0.
  • Light Red Co. Pty Ltd will have a $2,500 remaining (of FDT offset) that can be carried over to the next income year, as tax payable has been reduced to $0.
End of example

G – Section 102AAM interest charge

Write at G any section 102AAM interest relating to a distribution received from a non-resident trust. Section 102AAM of the ITAA 1936 imposes an interest charge on certain distributions from non-resident trusts.

For more information, see chapter 2 of the Foreign income return form guide 2022.

Continue to: Calculation statement label H – Eligible credits

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