A Taxable income
You wrote the SMSF's taxable income, or its loss, at O Taxable income or loss in Section C.
Is the amount at O Taxable income or loss a loss?
No |
Transfer the amount from O Taxable income or loss in Section C. |
|---|---|
Yes |
Write 0 at A. Go to T1. |
A is mandatory. If you leave A blank, you will have specified a zero amount.
T1 Tax on taxable income
Is the amount at A zero?
Yes |
Write 0 at T1. Go to J. |
|---|---|
No |
Read on. |
Is the SMSF a complying SMSF for 2015–16?
No |
All assessable income for a non-complying SMSF is taxed at 47%, whether arm's length income, non-arm's-length income or arising from a change in the SMSF's tax status. Multiply A by 47%. Write the answer at T1. |
|---|---|
Yes |
Different tax rates apply to arm's length and non-arm's-length income. Add:
The result is the tax on the SMSF's taxable income before applying rebates, tax offsets, and credits. Write the result at T1, then go to J. |
T1 is mandatory. If you leave T1 blank, you will have specified a zero amount.
J Tax on no-TFN-quoted contributions
If the SMSF received no-TFN-quoted contributions (recorded at R3 No-TFN-quoted contributions in Section B), it pays extra tax on those contributions.
Did the SMSF receive contributions from a member who has not provided their TFN?
No |
Write 0 at J. Go to B. |
|---|---|
Yes |
Read on. |
Extra tax applies to no-TFN-quoted contributions. To work out the extra tax, multiply the no-TFN-quoted contributions by:
- 34% if the SMSF is a complying SMSF
- 2% if the SMSF is a non-complying SMSF.
Write the result at J.
All SMSFs, complying and non-complying, have an overall tax rate of 49% on no-TFN-quoted contributions:
- complying SMSFs pay 15% (at T1) and 34% (at J), a total of 49%
- non-complying SMSFs pay 47% (at T1) and 2% (at J), a total of 49%.
J is mandatory. If you leave J blank, you will have specified a zero amount:
B Gross tax
Write at B the total of T1 and J. If the sum is zero, write 0 at B.
Example: Calculating B Gross tax (without non-arm's-length income)
SMSF B is a complying SMSF. It does not have any non-arm's-length income or no-TFN-quoted contributions.
SMSF B calculated its taxable income as $14,500 which it wrote in at O Taxable income or loss in Section C and also at A Taxable income in Section D.
SMSF B calculates its tax on taxable income at T1 to be $2,175 as follows:
Description |
Rate |
Income |
Tax |
|---|---|---|---|
T1 Tax on taxable income |
15% |
$14,500 |
$2,175 |
SMSF B does not have any no-TFN-quoted contributions so it writes $0 at J Tax on no-TFN-quoted contributions.
B Gross tax is the sum of T1 and J ($2,175 + $0).
In the SMSF annual return, SMSF B writes:
Section D: Income tax calculation statement |
Amounts |
|---|---|
A Taxable income |
$14,500 |
T1 Tax on taxable income |
$2,175 |
J Tax on no-TFN-quoted contributions |
$0 |
B Gross tax |
$2,175 |
Example: Calculating B Gross tax (with non-arm's-length income)
SMSF BB is a complying SMSF. It has non-arm's-length income but does not have any no-TFN-quoted contributions.
SMSF BB calculated its taxable income as $14,500 which it wrote at O Taxable income or loss in Section C and also at A Taxable income in Section D. This amount included non-arm's-length income of $4,500 which it wrote at U Non-arm's-length income in Section B.
SMSF BB calculates its tax on taxable income at T1 to be $3,615 as follows:
Description |
Calculation |
Tax |
|---|---|---|
Tax on arm's length income |
15% of $10,000 |
$1,500 |
Tax on non-arm's-length income |
47% of $4,500 |
$2,115 |
T1 Tax on taxable income |
$3,615 |
|
SMSF BB does not have any no-TFN-quoted contributions so it writes $0 at J Tax on no-TFN-quoted contributions.
B Gross tax is the sum of T1 and J ($3,615 + $0).
In the SMSF annual return, SMSF BB writes:
Section D: Income tax calculation statement |
Amounts |
|---|---|
A Taxable income |
$14,500 |
T1 Tax on taxable income |
$3,615 |
J Tax on no-TFN-quoted contributions |
$0 |
B Gross tax |
$3,615 |
End of example