Show at T2 the amount of tax payable after C Non-refundable non-carry forward tax offsets has been offset against B Gross tax.
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 6a)
- 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 6b)
- write 0 (zero) at T2 and T5
- copy the amount at E to I Tax offset refunds (remainder of refundable tax offsets). I is mandatory. You must include an amount at I even if it is zero (if zero write 0).
Example 6: Calculating T2 Subtotal
Example 6a: Applying C Non-refundable non-carry forward tax offsets when B 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 |
Tax offset refunds (remainder of refundable tax offsets) |
I |
$0 |
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 offset against $1,500 gross tax, resulting in $1,000 tax payable and the amount due.
Example 6b: Applying C Non-refundable non-carry forward tax offsets when B 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 |
Tax offset refunds (remainder of refundable tax offsets) |
I |
$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 offset against $3,000 gross tax resulting in $0 tax payable and no amount due. Light Blue Superannuation Fund loses $1,000 of the non-refundable non-carry forward tax offsets.