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T2 Subtotal

Last updated 12 February 2019

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 7a)
    • 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 7b)
    • write zero at T2 and T5
    • copy the amount at E to I Remainder of refundable tax offsets.
     

Example 7: Calculating T2 Subtotal

Start of example

Example 7a: 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

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 be used to offset against $1,500 gross tax, so:

  • tax payable has been reduced to $1,000
  • T5 will show $1,000 liability

the fund will show $1,000 payable at S.

Example 7b: 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-car ry forward tax offsets

C

$4,000

Subtotal

T2

$0

Refundable tax offsets

E

$0

Tax payable

T5

$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 be used to offset against $3,000 gross tax, so:

  • tax payable has been reduced to $0
  • Light Blue Superannuation Fund will have $1,000 (of non-refundable non-carry forward tax offsets) remaining that it will lose as tax payable has been reduced to $0
  • T5 will show $0

S will show $0, nil payable or refundable.

End of example

QC35420