C1, C2, C Non-refundable non-carry forward tax offsets

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?

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 1997

C2 Rebates and tax offsets

Is the SMSF entitled to rebates and tax offsets (other than those that the SMSF claims at C1, D1–4 or E1–4)?

Write at C2 the total of rebates and tax offsets available other than those that are included at C1, D1–4 or 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 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 and/or D2 Early stage venture capital limited partnership tax offset carried forward from previous year)
• early stage investor tax offset (include these at D3 Early stage investor tax offset and/or D4 Early stage investor tax offset carried forward from previous year).

Legislation

Subsection 67-25(1A) and Division 207 of the Income Tax Assessment Act 1997

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.

Continue to: T2 Subtotal 1