• E4 Exploration Credits Tax Offset

    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.

      Last modified: 15 Jul 2016QC 48112