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T2 Subtotal

Last updated 24 March 2021

Take C Non-refundable non-carry-forward tax offsets away from B Gross tax.

If the answer is:

  • positive, write the answer at T2
  • zero or negative, write 0 at T2.

If the non-refundable non-carry forward tax offsets are greater than the gross tax, the excess cannot be carried forward and is lost.

Example: Calculating T2 SUBTOTAL
(non-refundable non-carry-forward tax offsets greater than gross tax)

SMSF T2 is a complying SMSF with excess non-refundable non-carry- forward tax offsets. It writes the following amounts in its 2016 SMSF annual return:

Section D: Income tax calculation statement

Amount not used
in calculation

Amount used
in calculation

B Gross tax

 

$2,000

C2 Rebates and tax offsets

$2,500

 

C Non-refundable non-carry forward tax offsets

 

$2,500

T2 Subtotal

$0

SMSF T2 has more non-refundable non-carry-forward tax offsets ($2,500) than gross tax ($2,000).

SMSF T2 uses its non-refundable non-carry-forward tax offsets of $2,000 to reduce its gross tax to $0 at T2 Subtotal. It loses the remaining non-refundable non-carry-forward tax offsets ($500).

Example: Calculating T2 SUBTOTAL
(non-refundable non-carry-forward tax offsets less than gross tax)

SMSF T2 is a complying SMSF. Its non-refundable non-carry-forward tax offsets are less than its gross tax. It writes the following amounts in its SMSF annual return:

Section D: Income tax calculation statement

Amount not used
in calculation

Amount used
in calculation

B Gross tax

 

$2,175

C2 Rebates and tax offsets

$675

 

C Non-refundable non-carry-forward tax offsets

 

$675

T2 Subtotal

$1,500

SMSF T2 uses its $675 non-refundable non-carry-forward tax offsets against its $2,175 gross tax. The amount it enters at T2 Subtotal is $1,500 ($2,175 – $675).

End of example

QC48236