ato logo
Search Suggestion:

T3 Subtotal 2

Information of calculating T3 Subtotal 2.

Last updated 5 August 2024

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:

Calculation of T3 Subtotal (offsets greater than amount at T2 Subtotal 1)

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:

Calculation of T3 Subtotal (offsets less than amount at T2 Subtotal 1)

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 example

Continue to: E1, E2, E3 and E4 – E Refundable tax offset questions

QC64911