Instructions to complete the labels A, T1 and B of the calculation statement.
Complete label A as it is mandatory.
If the company is a resident company for tax purposes, taxable income equals assessable income derived from all sources less allowable deductions incurred in gaining that income.
If the company is a non-resident company, taxable income equals assessable income derived from sources within Australia, plus income that is included on some basis other than having an Australian source, less allowable deductions incurred in gaining that income.
Taxable income takes into account any concessions or adjustments allowable for income tax purposes.
Write at label A the amount of taxable income of $1 or more. The amount at label A will often be the amount written at item 7 – label T Taxable/net income or loss.
Write zero at label A if the company has no taxable income or has a loss amount written at item 7 – label T Taxable/net income or loss with label L in the box at the right of the amount.
Public trading trusts and corporate unit trusts with an income year that started before 1 July 2016 show net income at A.
Complete label T1 as it is mandatory.
Write at label T1 the amount of tax payable before the allowance of any rebates, tax offsets, credits or FDT offsets.
The tax rates applicable to companies are listed in Appendix 1.
An amount must be included at label T1 even if it is zero (write 0).
If you are not an RSA provider, write at label B the total amount from label T1.
If you are an RSA provider, write at label B the total of amounts at label T1 and any further tax on no-TFN contributions recorded at item 19 – label X.
Complete label B to ensure smooth processing of your tax return.
For more information on the further tax on no-TFN contributions, see Tax file numbers and super contributions.
The first category of tax offsets to be applied against gross tax is label C Non-refundable non-carry forward tax offsets. If the offsets are greater than the gross tax, the excess offsets cannot be used and are lost.
If tax is still payable after applying this category of offsets at label T2 Subtotal 1, the second category label D Non-refundable carry forward tax offsets is applied against any remaining tax payable at label T2.
Any excess of offsets in this category may be carried forward to the next year (subject to the tax offset carry forward rules in Division 65 of the ITAA 1997).
If tax is still payable after applying the Non-refundable carry forward tax offsets at label T3 Subtotal 2, the third category label E Refundable tax offsets is applied against the tax remaining. Any excess of refundable tax offsets above the residual tax payable at label T3 becomes part of the credits available to you and is shown at label I Remainder of refundable tax offsets.
However, if tax is still payable at label T4 Subtotal 3 after applying tax offsets from the above 3 categories, label F Franking deficits tax offsets are applied against this remaining tax to determine your tax payable amount. Any excess of label F over the residual tax payable at label T4 may be carried forward to a later income year.
Continue to: Calculation statement labels C, T2, D and T3