If the taxpayer has any unused offset this will have been disclosed on the latest notice of assessment.
There is no limit to the number of years that this unused balance can be carried forward.
Landcare and Water Facility Carried Forward
This section only applies if the income tax liability for the previous income year did not absorb all of the landcare and water facility tax offset available for that year.
If the taxpayer earned taxable income in the previous year the brought forward landcare and water facility offset has to be reduced by any unused net exempt income derived in that year. Unused net exempt income is any net exempt income remaining after deducting any total allowable prior year losses from the previous year's net exempt income.
If the taxpayer has a tax liability in the current year and intends to apply any brought forward landcare and water facility tax offset against that tax liability, the brought forward offset must also be reduced by net exempt income that was derived this year. Every dollar of net exempt income reduces the brought forward tax offset amount by 30 cents. Where the company is a base rate entity, the reduction amount is calculated at 27.5%.
Excess Offset from the previous income year's Tax Assessment: Enter the balance of the tax offset not yet claimed from the previous year's income estimate, as advised by the ATO.
Net Exempt Income: Enter any exempt income, such as that earned from lottery winnings or earned by a charitable, religious or educational institution.
Exempt Foreign Income: Enter any attributable foreign income.
Less: 27.5% of Net exempt income and Exempt Foreign Income: This is calculated as 27.5% of the two preceding fields and is only applicable to a company tax return.
Less: 30% of Net exempt income and Exempt Foreign Income: This is calculated as 30% of the two preceding fields. The amount calculated is deducted from the Excess Offset Brought Forward.