T5 Tax payable

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Example: Calculating T5 Subtotal (refundable tax offsets less than T2)

SMSF T5 has no excess refundable tax offsets. It writes the following amounts in its SMSF annual return:

Section D: Income tax calculation statement	Amount not used in calculation	Amount used in calculation
T2 Subtotal		$1,500
E1 Complying fund's franking credits tax offset	$500
E Refundable tax offsets		$500
T5 Tax payable		$1,000
I Tax offset refunds		$0

SMSF T5 takes the $500 refundable tax offsets away from its T2 Subtotal of $1,500. The amount at T5 Tax payable is $1,000 (that is, $1,500 – $500).

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Start of example

Example: Calculating T5 Subtotal (refundable tax offsets greater than T2)

SMSF T5 writes the following amounts in its SMSF annual return:

Section D: Income tax calculation statement	Amount not used in calculation	Amount used in calculation
T2 Subtotal		$1,500
E1 Complying fund's franking credits tax offset	$2,000
E Refundable tax offsets		$2,000
T5 Tax payable		$0
I Tax offset refunds		$500

SMSF T5 has more refundable tax offsets ($2,000) than tax (T2 Subtotal $1,500).

SMSF T5 uses the refundable tax offsets of $2,000 to reduce the tax to $0, which it writes at T5 Tax payable.

SMSF T5 writes the remaining refundable tax offset ($500) at I Tax offset refunds and this is available as a credit amount in the overall calculation.

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