Write at T2 the amount of tax payable after C has been offset against B Gross tax.
Label T2 cannot be less than zero.
Work out the amount at T2 as follows:
- if the amount at C is less than the amount at B (see example 7a)
- take C away from B
- write the result at T2
- if the amount at C is more than or equal to the amount at B (see example 7b)
- write zero at T2 and T5
- copy the amount at E to I Remainder of refundable tax offsets.
Example 7: Calculating T2 Subtotal
Example 7a: Applying label C when gross tax is greater than offsets - a payable position
Dark Blue Superannuation Fund has the following amounts entered into its Fund income tax return:
Taxable income |
A |
$10,000 |
Gross tax |
B |
$1,500 |
Non-refundable non-carry forward tax offsets |
C |
$500 |
Subtotal |
T2 |
$1,000 |
Refundable tax offsets |
E |
$0 |
Tax payable |
T5 |
$1,000 |
Amount due or refundable |
S |
$1,000 |
Dark Blue Superannuation Fund has an entitlement of $500 of non-refundable non-carry forward tax offsets to be used to offset against $1,500 gross tax, so:
- tax payable has been reduced to $1,000
- T5 will show $1,000 liability
- the fund will show a $1,000 payable at S.
Example 7b: Applying label C when gross tax is less than offsets - a nil position
Light Blue Superannuation Fund has the following amounts entered into its Fund income tax return:
Taxable income |
A |
$20,000 |
Gross tax |
B |
$3,000 |
Non-refundable non-carry forward tax offsets |
C |
$4,000 |
Subtotal |
T2 |
$0 |
Refundable tax offsets |
E |
$0 |
Tax payable |
T5 |
$0 |
Amount due or refundable |
S |
$0 |
Light Blue Superannuation Fund has an entitlement of $4,000 of non-refundable non-carry forward tax offsets to be used to offset against $3,000 gross tax, so:
- tax payable has been reduced to $0
- Light Blue Superannuation Fund will have $1,000 (of non-refundable non-carry forward tax offsets) remaining that it will lose as tax payable has been reduced to $0
- T5 will show $0
- S will show $0, nil payable or refundable.