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# T5 Tax payable

Last updated 12 February 2019

Show at T5 the amount of tax payable after the amount at E has been offset against the amount at T2.

T5 cannot be less than zero.

Work out the amount at T5 as follows:

• if the amount at E is less than the amount at T2 (see example 9a)
• take E away from T2
• write the result at T5

• if the amount at E is more than or equal to the amount at T2 (see example 9b)
• take T2 away from E
• write the result at I
• write zero at T5.

Example 9: Calculating T5 subtotal

Start of example

Example 9a: Applying E Refundable tax offsets when B Gross tax is greater than refundable tax offsets – a payable position

Dark Red Superannuation Fund has the following amounts entered into its Fund income tax return:

 Taxable income A \$40,000 Gross tax B \$6,000 Non-refundable non-carry forward tax offsets C \$2,000 Subtotal T2 \$4,000 Refundable tax offsets E \$3,000 Tax payable T5 \$1,000 Section 102AAM interest charge G \$200 Eligible credits H \$250 Remainder of refundable tax offsets I \$0 PAYG instalments raised K \$750 Amount due or refundable S \$200

Dark Red Superannuation Fund has an entitlement of \$2,000 of non-refundable non-carry forward tax offset and \$3,000 of refundable tax offset to be used to offset against \$6,000 gross tax, so:

• tax payable has been reduced to \$1,000 (T5)
• there is no refundable tax offset to be carried into I
• add the \$200 (G) to the \$1,000 (T5) to increase the liability to \$1,200
• subtract the \$250 (H) and the \$750 (K) from the \$1,200

S will show a \$200 liability.

Example 9b: Applying E Refundable tax offsets when B Gross tax is less than offsets – a refundable position

Light Red Superannuation Fund has the following amounts entered into its Fund income tax return:

 Taxable income A \$40,000 Gross tax B \$6,000 Non-refundable non-carry forward tax offsets C \$2,000 Subtotal T2 \$4,000 Refundable tax offsets E \$5,000 Tax payable T5 \$0 Section 102AAM interest charge G \$300 Eligible credits H \$540 Remainder of refundable tax offsets I \$1,000 PAYG instalments raised K \$850 Amount due or refundable S \$2,090

Light Red Superannuation Fund has an entitlement of \$2,000 of non-refundable non-carry forward tax offsets and \$5,000 of refundable tax offsets to be used to offset against \$6,000 gross tax, so:

• tax payable has been reduced to \$0 (T5)
• the \$1,000 of refundable tax offsets remaining, is transferred to I
• add the \$300 (G) to the \$0 (T5) to increase the liability to \$300
• subtract the \$540 (H), \$1,000 (I) and the \$750 (K) from the \$300

S will show a \$2,090 refundable amount.

End of example

QC35420