Transurban FY26 Corporate Report Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2026
B6 Income tax (continued) Transurban (USA) Holdings income tax consolidated group
Transurban (USA) Holdings Inc (TUSAH) is the parent company of the TUSAH income tax consolidated group. The TUSAH income tax consolidated group includes the affiliated group of US corporations that are responsible for providing management services to the Group’s North American operations. The TUSAH income tax consolidated group also owns membership interests in TC and AM Partners partnerships which are classified as partnerships for USFIT purposes. The TUSAH income tax consolidated group includes its respective share of the TC and AM Partners partnerships' profits or losses in its US tax return. Transurban Cardinal Holdings Ltd Until its disposal of the remaining 50% ownership interest in June 2026, Transurban Cardinal Holdings Ltd (TCH) owned membership interests in Skawanoti Holdings LP (SKHLP) which was classified as a partnership for Canadian income tax purposes. TCH included its
respective share of the SKHLP partnerships' profits or losses in its Canadian tax return. All entities within the Canadian structure were treated as standalone entities for tax purposes. Pillar Two model rules
The Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting published the Pillar Two model rules designed to address the tax challenges arising from the digitalisation of the global economy. The Group operates in jurisdictions in which Pillar Two legislation has been enacted, namely Australia and Canada. The Group has no material current tax effect relating to Pillar Two income taxes for the year ended 30 June 2026. The Group has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two taxes, as provided by AASB 112 Income Taxes . KEY ACCOUNTING ESTIMATE AND JUDGEMENT The Group is subject to income taxes in Australia, the United States of America and Canada. Significant judgement is required in determining the provision for income taxes. There are various transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The Group recognises liabilities for tax audit issues based on whether it is anticipated that additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred tax assets and liabilities in the period in which such determination is made. The Group has recognised deferred tax assets relating to carried forward tax losses to the extent there are sufficient taxable temporary differences relating to the same taxation authority against which the unused tax losses can be utilised. The utilisation of tax losses also depends on the ability of the Group to satisfy certain tests at the time the losses are recouped, including: • In Australia, tax losses are generally carried forward indefinitely, subject to satisfaction of loss integrity measures; • In the United States of America, all tax losses relate to periods beginning on or after 1 July 2018, and are generally carried forward indefinitely, subject to an 80
per cent utilisation limit on taxable income in any given year; and • In Canada, tax losses generally expire after a 20 year period.
Management have reviewed deferred tax assets with reference to the potential impact of the macroeconomic environment on forecast taxable income and have determined that it is probable that future taxable income will be available to utilise against deferred tax assets recognised as at 30 June 2026 in relation to deductible temporary differences and unused tax losses.
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