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 |
Amount used |
|---|---|---|
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 |
Amount used |
|---|---|---|
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