T5 is mandatory. If you leave T5 blank, you will have specified a zero amount.
Is the amount at T3 Subtotal more than the amount at E Refundable tax offsets?
No |
Write 0 at T5. Take T3 Subtotal away from E Refundable tax offsets. Write the result at I Tax offset refunds. |
Yes |
Take E Refundable tax offsets away from T3 Subtotal. Write the result at T5. |
Example: Calculating T5 Tax payable (refundable tax offsets less than T3)
SMSF T5 has no excess refundable tax offsets. It writes the following amounts in its SMSF annual return:
Calculation of T5 Tax payable (refundable offsets less than T3)
Calculation of T5 Tax payable (refundable offsets less than T3)Section D: Income tax calculation statement |
Amount used in calculation |
|---|---|
T3 Subtotal |
$1,500 |
E Refundable tax offsets |
$500 |
T5 Tax payable |
$1,000 |
I Tax offset refunds |
$0 |
SMSF T5 takes the $500 refundable tax offsets away from its T3 Subtotal of $1,500. The amount at T5 Tax payable is $1,000 (that is, $1,500 − $500).
End of example
Example: Calculating T5 Tax payable (refundable tax offsets greater than T3)
SMSF T5 writes the following amounts in its SMSF annual return:
Calculation of T5 Tax payable (refundable offsets greater than T3)
Calculation of T5 Tax payable (refundable offsets greater than T3)Section D: Income tax calculation statement |
Amount used in calculation |
|---|---|
T3 Subtotal |
$1,500 |
E Refundable tax offsets |
$2,000 |
T5 Tax payable |
$0 |
I Tax offset refunds |
$500 |
SMSF T5 has more refundable tax offsets ($2,000) than tax (T3 Subtotal $1,500).
SMSF T5 uses the refundable tax offsets of $2,000 to reduce the tax to $0, which it writes at T5 Tax payable.
SMSF T5 writes the remaining refundable tax offset ($500) at I Tax offset refunds and this is available as a credit amount in the overall calculation.
End of example