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T5 Tax payable

Last updated 12 February 2019

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

Label 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

Example 9a: Applying label E when 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 label E when 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.

QC25835