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 can't be less than zero. Include an amount even if it is zero (write 0).
Example 20a: calculating tax payable at label T5, FDT offset applied
Dark Red Co. Pty Ltd, a base rate entity has the following amounts entered into its company tax return.
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
- $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 exampleExample 20b: calculating tax payable at label T5, FDT offset carried forward
Light Red Co. Pty Ltd, a base rate entity, has the following amounts entered into its company tax return.
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
- $4,000 of franking deficit tax (FDT) 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 exampleG – 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 Transferor trust and related measures of the Foreign income return form guide.
Continue to: Calculation statement label H – eligible credits
Return to: Instructions to complete the Company tax return 2024