# Calculation statement labels T5 and G

Last updated 24 July 2023

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

## T5 – Tax payable

Complete label T5 as it is mandatory.

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

Work out the amount at label T5 as follows:

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

Label T5 cannot be less than zero. Include an amount even if it is 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

Since this is a base rate entity, the lower company tax rate of 25% has been applied.

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.
• Label 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

Since this is a base rate entity, the lower company tax rate of 25% has been applied.

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.
• Label 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 label 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.

Continue to: Calculation statement label H – eligible credits

QC72678