Instructions to complete the labels T5 and G of the calculation statement.
T5 – Tax payable
Complete label T5 as it is mandatory.
Write at label T5 the amount of tax payable after label F has been offset against label T4.
Work out the amount at label T5 as follows:
- If the amount at label F is less than the amount at label T4
- subtract label F from label T4
- write the result at label T5.
- If the amount at label F is more than or equal to the amount at label T4
- write zero at label T5
- the difference between labels T4 and F (subtract label T4 from label F) may be carried forward to a later income year.
Label T5 cannot be less than zero. Include an amount even if it is zero (write 0).
Example 20a
Dark Red Co. Pty Ltd, a base rate entity has the following amounts entered into its company tax return:
Label |
Description |
Amount |
|---|---|---|
A |
Taxable income |
$42,000 |
B |
Gross tax (25%) |
$10,500 |
C |
Non-refundable non-carry forward tax offset |
$3,000 |
T2 |
Subtotal 1 |
$7,500 |
D |
Non-refundable carry forward tax offset |
$3,000 |
T3 |
Subtotal 2 |
$4,500 |
E |
Refundable tax offset |
$3,000 |
T4 |
Subtotal 3 |
$1,500 |
F |
Franking deficit tax offset |
$1,000 |
T5 |
TAX PAYABLE |
$500 |
I |
Tax offset refunds (remainder of refundable tax offsets) |
$0 |
S |
Amount due or refundable |
$500 |
Since this is a base rate entity, the lower company tax rate of 25% has been applied.
Dark Red Co. Pty Ltd has an entitlement of $3,000 of non-refundable non-carry forward tax offset, $3,000 of non-refundable carry forward tax offset, $3,000 of refundable tax offset and $1,000 of franking deficit tax offset to be used to offset against $10,500 gross tax.
- Tax payable has been reduced to $500.
- Label I must show $0.
Example 20b
Light Red Co. Pty Ltd, a base rate entity, has the following amounts entered into its company tax return:
Label |
Description |
Amount |
|---|---|---|
A |
Taxable income |
$42,000 |
B |
Gross tax (25%) |
$10,500 |
C |
Non-refundable non-carry forward tax offset |
$3,000 |
T2 |
Subtotal 1 |
$7,500 |
D |
Non-refundable carry forward tax offset |
$3,000 |
T3 |
Subtotal 2 |
$4,500 |
E |
Refundable tax offset |
$3,000 |
T4 |
Subtotal 3 |
$1,500 |
F |
Franking deficit tax offset |
$4,000 |
T5 |
TAX PAYABLE |
$0 |
I |
Tax offset refunds (remainder of refundable tax offsets) |
$0 |
S |
Amount due or refundable |
$0 |
Since this is a base rate entity, the lower company tax rate of 25% has been applied.
Light Red Co. Pty Ltd has an entitlement of $3,000 of non-refundable non-carry forward tax offset, $3,000 of non-refundable carry forward tax offset, $3,000 of refundable tax offset and $4,000 of franking deficit tax offset to be used to offset against $10,500 gross tax:
- Tax payable has been reduced to $0.
- Label I must show $0.
- Light Red Co. Pty Ltd will have a $2,500 remaining (of FDT offset) that can be carried over to the next income year, as tax payable has been reduced to $0.
G – Section 102AAM interest charge
Write at label G any section 102AAM interest relating to a distribution received from a non-resident trust. Section 102AAM of the ITAA 1936 imposes an interest charge on certain distributions from non-resident trusts.
For more information, see chapter 2 of the Foreign income return form guide.
Continue to: Calculation statement label H – eligible credits