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Section B: Notes to the Group financial statements for the year ended 30 June 2026
B6
Income tax (continued)
Deferred tax assets and liabilities
Assets
Liabilities
2026
2025
2026
2025
$M
$M
$M
$M
The balance comprises temporary differences attributable to: Provisions
581 642 587
538 447 626
(20)
(19)
Current and prior year losses
—
—
Fixed assets/intangibles
(949) (204) (324)
(859) (229) (498)
Concession fees and promissory notes
—
—
Derivative financial instruments and foreign exchange
283
604
Lease liabilities
31 — 32
35 — 30
—
—
Equity accounted investments
(846)
(989)
Other
—
—
Deferred tax assets/(liabilities)
2,156 (1,414)
2,280 (1,284)
(2,343)
(2,594)
Set-off of deferred tax
1,414
1,284
Net deferred tax assets/(liabilities)
742
996
(929)
(1,310)
Movements: Opening balance at 1 July
2,280
2,086
(2,594)
(2,521)
(Charged)/credited to profit and loss
(9)
145 156
42
70
(Charged)/credited to equity Foreign exchange movements
(257)
147
(129)
(5)
2
48 14
(14)
Transfer from deferred tax assets/liabilities
(14)
—
—
Current year losses recognised/(prior year losses utilised) and under/(over) provision in prior years
161
(109)
—
—
Closing balance at 30 June
2,156
2,280
(2,343)
(2,594)
The Group has $37 million of unrecognised tax losses as at 30 June 2026 (2025: $35 million).
Income tax accounting policy Recognition and measurement
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income tax is not recognised for temporary differences relating to the following: • the initial recognition of goodwill • the initial recognition of an asset or liability other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences • investments in subsidiaries, joint ventures and associates where the Group is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Current and deferred tax is recognised in the profit and loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity, in which case the tax effect is also recognised in other comprehensive income or equity. Right to offset income taxes Deferred tax assets and liabilities are offset in the consolidated balance sheet when there is a legally enforceable right to set off current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to set off and intends either to settle on a net basis, or to realise the asset and settle
the liability simultaneously. Investment allowances
Companies within the Group may be entitled to claim special income tax deductions for investments in qualifying assets (investment allowances). The Group accounts for such allowances as income tax credits, which means that the allowance reduces income tax payable and current tax expense. A deferred tax asset is recognised for unclaimed income tax credits that are carried forward as tax losses.
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