• T2 Subtotal

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    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    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 Tax offset refunds (remainder of refundable tax offsets). I is mandatory. You must include an amount at I even if it is zero (if zero write 0).

    Example 7: Calculating T2 Subtotal

    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

    Tax offset refunds (remainder of refundable tax offsets)

    I

    $0

    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 offset against $1,500 gross tax, resulting in $1,000 tax payable and the amount due.

    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-carry forward tax offsets

    C

    $4,000

    Subtotal

    T2

    $0

    Refundable tax offsets

    E

    $0

    Tax payable

    T5

    $0

    Tax offset refunds (remainder of refundable tax offsets)

    I

    $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 offset against $3,000 gross tax resulting in $0 tax payable and no amount due. Light Blue Superannuation Fund loses $1,000 of the non-refundable non-carry forward tax offset.

    Last modified: 05 Nov 2014QC 40267