Calculation statement labels T5 and G

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.

Tax return information
Label	Description	Amount
A	Taxable income	$42,000
B	Gross tax (25%)	$10,500
C	Non-refundable non-carry forward tax offsets	$3,000
T2	Subtotal 1	$7,500
D	Non-refundable carry forward tax offsets	$3,000
T3	Subtotal 2	$4,500
E	Refundable tax offsets	$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 offsets
$3,000 of non-refundable carry forward tax offsets
$3,000 of refundable tax offsets
$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.

Example 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.

Tax return information
Label	Description	Amount
A	Taxable income	$42,000
B	Gross tax (25%)	$10,500
C	Non-refundable non-carry forward tax offsets	$3,000
T2	Subtotal 1	$7,500
D	Non-refundable carry forward tax offsets	$3,000
T3	Subtotal 2	$4,500
E	Refundable tax offsets	$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 offsets
$3,000 of non-refundable carry forward tax offsets
$3,000 of refundable tax offsets
$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 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 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 2026