2022 Corporate Report

Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Section B: Notes to the Group financial statements for the year ended 30 June 2022

Section B: Notes to the Group financial statements for the year ended 30 June 2022

B7 Income tax Income tax expense/(benefit)

2022

2021

$M

$M 627 551

Current tax Deferred tax

(39)

(226)

(Over)/under provision in prior years

(11)

3

(276)

1,181

Income tax benefit attributable to continuing operations Income tax expense attributable to discontinued operations

(276)

(193)

1,374 1,181

(276)

Deferred income tax benefit included in income tax (benefit)/expense comprises: Increase in deferred tax assets

(61)

(72)

(Decrease)/increase in deferred tax liabilities

(165) (226)

623 551

Reconciliation of income tax expense/(benefit) to prima facie tax payable

2022

2021

$M

$M

Loss before income tax from continuing operations

(260)

(480)

Profit before income tax from discontinued operations (Note B24)

4,933 4,453 1,336

(Loss)/profit before income tax

(260)

Tax at the Australian tax rate of 30% (2021: 30%)

(78)

Tax effect of amounts which are not deductible/(taxable) in calculating taxable income: Trust income not subject to tax

(251)

(131)

Equity accounted results

100

35

Tax rate differential

3

(195)

(Non-assessable)/non-deductible interest Non-deductible depreciation Prior year tax losses recognised (Over)/under provision in prior years Gain on disposal of controlling interest in TC

(25)

12 34

10

(25) (11)

(5)

3

47 34 11

Foreign exchange

(3)

Other items

4

Income tax expense/(benefit)

(276)

1,181

Tax expense/(income) relating to items of other comprehensive income and equity Cash flow hedges

194

32

Foreign currency translation

(26)

2 2

Cost of hedging

4

Other equity transactions

(7)

— 36

165

Current tax assets and liabilities As at 30 June 2022 the current tax assets and liabilities of the Group relate to income tax receivable for the Transurban DRIVe Holdings LLC (DRIVe) and Transurban (USA) Holdings Inc (TUSAH) tax consolidated groups, and income tax payable for the Airport Motorway Pty Limited (AML) tax consolidated group and TU Cardinal Secondary Holdings Ltd as a standalone entity. Prior year tax losses recognised During the year ended 30 June 2022, the Group undertook a review of its unbooked tax losses in conjunction with updated forecast financial information of the relevant entities in the Group. As a result, the Group has determined it is probable that future taxable profit will be available to utilise previously unbooked tax losses in the TIL Australia tax consolidated group. Accordingly, an additional deferred tax asset of $25 million has been recognised as at 30 June 2022.

138 138

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