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E4 Exploration Credits Tax Offset

Last updated 12 February 2019

Show at E4 the amount of exploration credits received during the income year.

A fund may be entitled to a tax offset for exploration credits received during the income year if it was an Australian resident for the whole of the income year.

The amount of the tax offset is the total value of exploration credits the fund received in the income year. However, special rules may apply where the fund has received exploration credits from a partnership or a trust.

For more information, see:

T5 Tax payable

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

T5 cannot be less than zero.

T5 is mandatory. You must include an amount at T5 even if it is zero (if zero write 0).

Work out the amount at T5 as follows:

  • if the amount at E is less than the amount at T2 (see example 8a)    
    • 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 8b)    
    • take T2 away from E
    • write the result at I
    • write 0 (zero) at T5.
     

Example 8: Calculating T5 subtotal

Example 8a: Applying E Refundable tax offsets when B Gross tax is greater than tax offsets (this is a payable position)

Dark Red Superannuation Fund has the following amounts entered into its fund 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

Tax offset refunds (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 (write 0 at 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 amount due.

Example 8b: Applying E Refundable tax offsets when B Gross tax is less than offsets (this is a refundable position)

Light Red Superannuation Fund has the following amounts entered into its fund 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

Tax offset refunds (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 $850 (K) from the $300

S will show a $2,090 refundable amount.

QC48112