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 1
(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 2021 SMSF annual return:
Section D: Income tax calculation statement | Amount used in calculation |
|---|---|
B Gross tax | 2,000 |
C Non-refundable non-carry forward tax offsets | 2,500 |
T2 Subtotal 1 | 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 1. It loses the remaining non-refundable non-carry forward tax offsets ($500).
End of example
Example: Calculating T2 SUBTOTAL 1
(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 used in calculation |
|---|---|
B Gross tax | 2,175 |
C Non-refundable non-carry forward tax offsets | 675 |
T2 Subtotal 1 | 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 1 is $1,500 ($2,175 − $675).
End of exampleContinue to: D1, D2, D3, D4, D Non-refundable carry forward tax offsets