Take D Non-refundable carry forward tax offsets away from T2 Subtotal 1.
If the answer is:
- positive, write the answer at T3
- zero or negative, write 0 at T3.
If the non-refundable carry forward tax offsets are greater than the subtotal at T2, the excess may be carried forward and applied in a later income year.
Example: Calculating T3 Subtotal 2
(non-refundable carry forward tax offsets greater than T2 Subtotal 1)
SMSF T3 is a complying SMSF with excess non-refundable 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 |
|---|---|
T2 Subtotal 1 | 2,000 |
D Non-refundable carry forward tax offsets | 2,500 |
T3 Subtotal | 0 |
SMSF T3 has more non-refundable carry forward tax offsets ($2,500) than its T2 Subtotal 1 ($2,000).
SMSF T3 uses its non-refundable carry forward tax offset of $2,000 to reduce its T2 Subtotal 1 to $0 at T3 Subtotal. It may carry forward the remaining non-refundable carry forward tax offset ($500) to the next income year.
Example: Calculating T3 Subtotal
(non-refundable carry forward tax offsets less than amount at T2 Subtotal 1)
SMSF T3 is a complying SMSF. Its non-refundable carry forward tax offsets are less than its T2 Subtotal 1. It writes the following amounts in its SMSF annual return:
Section D: Income tax calculation statement | Amount used in calculation |
|---|---|
T2 Subtotal 1 | 2,175 |
D Non-refundable carry forward tax offsets | 675 |
T3 Subtotal | 1,500 |
SMSF T3 uses its $675 non-refundable carry forward tax offsets against its $2,175 T2 Subtotal 1. The amount it enters at T3 Subtotal is $1,500 ($2,175 − $675).
End of exampleContinue to: E1, E2, E3 and E4 – E Refundable tax offset questions