Non-refundable non-carry forward tax offsets (if the SMSF is entitled to them) reduce the SMSF's gross tax. If the total of the 'non-refundable non-carry forward' tax offsets is greater than the gross tax, the excess cannot be carried forward and is lost. If the SMSF's gross tax is greater than the total of non-refundable non-carry forward tax offsets, the remaining tax is shown at T2 Subtotal 1.
C1 Foreign income tax offset
Is the SMSF entitled to a foreign income tax offset?
No |
Leave C1 blank. Go to C2. |
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Yes |
Read on. |
The SMSF may be able to claim a foreign income tax offset where it has paid foreign income tax on an amount included in its assessable income. The SMSF’s foreign income tax offset is limited to the lesser of:
- the foreign income tax that the SMSF paid (or is taken to have paid), and
- the SMSF's foreign income tax offset limit (which is $1,000 or the amount calculated under paragraph 770-75(2)(b) of the ITAA 1997, whichever is greater).
- Write at C1 the amount that the SMSF can claim as a foreign income tax offset.
Do not include Australian franking credits from a New Zealand company at C1. Include these at:
- E1 Complying fund’s franking credits tax offset if the SMSF is complying, or
- C2 Rebates and tax offsets if the SMSF is non-complying.
For more information, see Guide to foreign income tax offset rules.
Legislation
Subdivision 770-B of the Income Tax Assessment Act 1997External Link
C2 Rebates and tax offsets
Is the SMSF entitled to rebates and tax offsets (other than those that the SMSF claims at C1, D1-2 or E1-4)?
No |
Leave C2 blank. Go to C. |
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Yes |
Read on. |
Write at C2 the total of rebates and tax offsets available other than those that are included at C1, D1-2or at E1-4.
Include franking credits tax offsets at C2 if the SMSF is non-complying. For details on entitlement to a franking credits tax offset, see Entitlement to a franking credits tax offset.
You must also include the franking credit as income at the appropriate question in Section B.
Do not include:
- franking credits tax offsets if the SMSF is complying (include these at E1 Complying fund’s franking credits tax offset)
- no-TFN tax offsets (include these at E2 No-TFN tax offset)
- franking credits attributable to a dividend that is excluded from assessable income because family trust distribution tax has been paid
- franking credits tax offsets for foreign (including New Zealand) imputation credits (the SMSF cannot claim these in Australia).
- early stage venture capital limited partnership tax offset (include these at D1 Early stage venture capital limited partnership tax offset)
- early stage investor tax offset (include these at D2 Early stage investor tax offset)
Legislation
Subsection 67-25(1A) and Division 207 of the Income Tax Assessment Act 1997External Link
C Non-refundable non-carry forward tax offsets
Write at C the total of C1 Foreign income tax offset and C2 Rebates and tax offsets. If you did not write an amount at C1 or C2, leave C blank.