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# T5 Tax payable

Last updated 24 March 2021

Is the amount at T2 Subtotal more than the amount at E Refundable tax offsets?

 No Write 0 at T5. Take T2 Subtotal away from E Refundable tax offsets. Write the result at I Tax offset refunds. Yes Take E Refundable tax offsets away from T2 Subtotal. Write the result at T5.

T5 is mandatory. If you leave T5 blank, you will have specified a zero amount.

Start of example

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).

End of example
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.

End of example

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