About the calculation statement and calculating the amounts for labels T5 tax payable and S amount due or refundable.

## About the calculation statement

This statement works out the tax liability (if any) where there is a taxable or net income. It also takes into account amounts that reduce the tax liability. The final outcome is the net amount the company must pay or we will refund.

We use the information you provide in the **Calculation statement** to calculate the Commissioner’s instalment rate and the Commissioner’s instalment amount for taxpayers under the PAYG instalment system.

Complete the **Calculation statement** as accurately as possible, so the rate and instalment amounts we calculate result in a reliable estimate of your tax payable.

To work through the **Calculation statement** on the tax return, begin with the right-hand column at the top.

In the **Calculation statement**, labels **A**, **B**, **T1**, **T5**, **I** and **S** are mandatory for legal or ATO purposes. Complete these to facilitate smooth processing of the tax return.

## Calculating your T5 Tax payable and S Amount due or refundable

Follow the steps to calculate your **T5 Tax payable** and **S Amount due or refundable** in the calculation statement.

### Step 1: Write the following amounts

- If the amount is a positive at item
**7**– label**T****Taxable/net income or loss**then write the amount at**A Taxable or net income**.- If the amount is a loss at item
**7**– label**T**then write zero (write**0**) at label**A**. - Include an amount at label
**A**even if it is zero (write**0**). - Complete label
**A**, as it is mandatory.

- If the amount is a loss at item
- Write the totals in the
**Calculation statement**for the following labels: - From your records, transfer the respective amounts to
- G – Section 102AAM interest charge
- H2 – Credit for tax withheld – foreign resident withholding (excluding capital gains)
- H3 – Credit for tax withheld where ABN is not quoted
- H4 – Tax withheld from interest or investments
- H5 – Credit for TFN amounts withheld from payments from closely held trusts
- H8 – Credit for foreign resident capital gains withholding amounts
- K – PAYG instalments raised.

- For retirement savings accounts (RSA) providers only
- write at item
**19**– label**U**the amount of no-TFN contributions income; if zero (write**0**) - write at item
**19**– label**X**the amount of tax payable on no-TFN contributions income; if zero (write**0**).

- write at item

### Step 2: Work out the amount at T1 Tax on taxable or net income

See, Appendix 1 for the tax rates.

If any tax is payable (a positive amount) on the amount in the **Calculation statement** at label **A**, write this tax payable amount at label **T1**.

- Include an amount at label
**T1**even if it is zero (write**0**). - Complete label
**T1**, as it is mandatory.

### Step 3: Work out the amount at B Gross Tax

For information to help you complete this step, see B – Gross tax:

- For RSAs, add label
**T1**and the amount at item**19**– label**X****Income tax payable on no-TFN contributions income**. - Write the result at label
**B**. - For non-RSAs, write at label
**B**the amount from label**T1**.

### Step 4: Work out the amount at T2 Subtotal 1

For information to help you complete this step, see T2 – Subtotal 1.

- If the amount at label
**C Non-refundable non-carry forward tax offsets**is less than the amount at label**B Gross tax**- subtract label
**C**from label**B** - write the result at label
**T2** - go to step 5.

- subtract label
- If the amount at label
**C**is more than or equal to the amount at label**B Gross Tax**, write zero (**0**) at labels**T2**,**T3 Subtotal 2**,**T4 Subtotal 3**and**T5 Tax Payable**- include an amount at label
**T5**even if it is zero (write**0**) - complete label
**T5**, as it is mandatory

- include an amount at label

The amount at labels **D** and **F** may be carried forward to a later income year (subject to the tax offset carry forward rules in Division 65 of the ITAA 1997)

Copy the amount at label **E** to label **I Tax offset refunds** (**Remainder of refundable tax offsets**)

- an amount must be included at label
**I**even if it is zero (write**0**) - complete label
**I**as it is mandatory - go to step 8.

### Step 5: Work out the amount at T3

For information to help you complete this step, see T3 – Subtotal 2.

- If the amount at label
**D Non-refundable carry forward tax offsets**is less than the amount at label**T2**- subtract label
**D**from label**T2** - write the result at label
**T3** - go to step 6.

- subtract label
- If the amount at label
**D**is more than or equal to the amount at label**T2**- Write zero (
**0**) at labels**T3**,**T4**and**T5** - the difference between label
**T2**and label**D**(subtract label**T2**from label**D**) may be carried forward to a later income year (subject to the tax offset carry forward rules in Division 65 of the ITAA 1997) - the amount at label
**F Franking deficit tax offset**may be carried forward to a later income year - copy the amount at
**E Refundable tax offsets**to**I Tax offset refunds** - go to step 8.

- Write zero (

### Step 6: Work out the amount at T4

For information to help you complete this step, see T4 – Subtotal 3.

- If the amount at label
**E**is less than the amount at label**T3**- subtract label
**E**from label**T3** - write the result at label
**T4** - write zero (
**0**) at label**I** - go to step 7.

- subtract label
- If the amount at label
**E**is more than or equal to the amount at label**T3**- subtract label
**T3**from label**E**and write the result at label**I** - write zero (
**0**) at labels**T4**and**T5** - the amount at label
**F**may be carried forward to a later income year - go to step 8.

- subtract label

### Step 7: Work out the amount at T5

For information to help you complete this step, see T5 – Tax payable.

- If the amount at label
**F**is less than the amount at label**T4**- subtract label
**F**from label**T4** - write the result at label
**T5** - go to step 8.

- subtract label
- If the amount at label
**F**is more than or equal to the amount at label**T4**- write zero (
**0**) at label**T5** - the result of subtracting label
**T4**from label**F**, may be carried forward to a later income year - go to step 8.

- write zero (

### Step 8: Work out the amount at H Eligible credits

For information to help you complete this step, see H – Eligible credits.

- Add from labels
**H2**to**H8**and write the result at label**H**. - Go to step 9.

### Step 9: Work out the amount at S Amount due or refundable

For information to help you complete this step, see S – Amount due or refundable:

- Add labels
**T5**and**G Section 102AAM interest charge**, and then subtract labels**H**,**I**and**K**. - Write the result at label
**S**.- If the amount at label
**S**is positive, that amount is payable by you. - If the amount at label
**S**is negative, that amount is refundable to you.

- If the amount at label

Continue to: Calculation statement labels A, T1 and B