Priority of use of the tax offsets
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Funds have access to two types of tax offsets:
- non-refundable non-carry forward tax offsets
- refundable tax offsets.
The first category of tax offsets to be applied against gross tax is C Non-refundable non-carry forward tax offsets. As the name of this category suggests, if the tax offsets are greater than the gross tax, the excess of offsets is lost. If gross tax is greater than the offsets at C the remaining tax is shown at T2 Subtotal.
The second category of offsets is E Refundable tax offsets. If the fund is entitled to any refundable tax offsets, the offsets reduce any remaining tax at T2. If the remaining tax is reduced to zero and not all refundable tax offsets have been used up (that is, the E Refundable tax offsets amount exceeds the remaining tax at T2), show the excess of refundable tax offsets at I Tax offset refunds (Remainder of refundable tax offsets). If refundable tax offsets are less than the remaining tax at T2 the shortfall becomes your tax payable amount at T5 TAX PAYABLE.
Labels I and T5 are mandatory. You must include an amount at I and T5 even if the amount is zero (if zero write 0).
Any amount at G Section 102AAM interest charge is payable and will increase the T5 amount.
K PAYG instalments raised, rather than just paid, on activity statements and other credits included under H Eligible credits along with any amount at I Tax offset refunds (Remainder of refundable tax offsets) will be applied against the tax payable amount to determine the amount due by the fund or refundable to the fund.
Last modified: 05 Nov 2014QC 40267