Credit from FBT instalment variation worksheet (Label 6B or F1, F2 or F3)

The entity may receive an FBT instalment credit if it varied its notional tax to an amount lower than the FBT payable last year. This credit can be taken into account in determining any amount payable.

Complete this field only if the entity has varied its FBT instalment amount for the quarter and it has excess instalment credits.

To complete the worksheet at Label 6B or F1, F2 or F3

Period covered by this statement: Enter the period that relates to this activity statement.
Previous instalment liabilities: Enter the instalments for each quarter. These amounts have been entered at 6A of previous activity statements of the income year. Include any amounts not yet paid.
Credits claimed for earlier quarters: Enter the credits claimed for each quarter in the income year. These amounts have been entered at 6B of previous activity statements of the income year.
Estimated total FBT payable: Enter the total estimate of FBT payable for each quarter in the income year. These amounts have been entered at F2 of the previous activity statement and F2 of the current statement.
Relevant fraction: This field is calculated according to the following fractions:
1. .25 quarter ended 30 June
2. .50 quarter ended 30 September
3. .75 quarter ended 31 December
4. 1.00 quarter ended 31 March
Amount of credit available to claim: If the result is positive, this is the amount that may be claimed.

Example

ABC Pty Ltd has a notional tax of $40,000. The FBT instalment amount payable in both the first and second quarters is $10,000, that is, a total of $20,000.

In the third quarter, several executives resign and ABC Pty Ltd estimates that its FBT liability for this year will be reduced to $16,000. Record this amount at Label F2.

ABC Pty Ltd's FBT instalment for this quarter will be zero because Step 2 at Label F3 is a negative amount, calculated as, ($16,000 x .75) - $20,000. Record this amount at Label F3 and also at Label 6A.

ABC Pty Ltd will have an instalment credit of $8,000 calculated as:

($20,000 + $0) - ($16,000 x .75)

Record this amount at Label 6B.