2024 Corporate Report

Financial statements

Section B: Notes to the Group financial statements for the year ended 30 June 2024

Section B: Notes to the Group financial statements for the year ended 30 June 2024

B6 Income tax (continued) Deferred tax assets and liabilities

Assets

Liabilities

2024 2023² $M $M $M $M 2023² 2024

The balance comprises temporary differences attributable to: Provisions

428 537 620

434 668 607

(16)

(16)

Current and prior year losses

Fixed assets/intangibles

(945) (206) (369)

(1,081)

Concession fees and promissory notes Derivatives and foreign exchange

(220) (358)

432

424

Lease liabilities

41 — 28

42 — 21

Equity accounted investments

(985)

(995)

Other

Tax assets/(liabilities)

2,086

2,196

(2,521)

(2,670)

Set-off of tax

(1,136)

(1,231)

1,136

1,231

Net tax assets/(liabilities)

950

965

(1,385)

(1,439)

Movements: Opening balance at 1 July Credited to profit or loss (Charged)/credited to equity

2,196

2,072

(2,670)

(2,989)

72

88

121

169

(10)

174

6

(56)

Disposed through other comprehensive income 1

— — —

(52)

— —

316

Acquired¹

(106)

Foreign exchange movements

2

6 3

(33)

Transfer from deferred tax assets/liabilities

(3)

(47)

47

Current year losses recognised/(prior year losses utilised) and under/(over) provision in prior years

(169)

(41)

13

(18)

Closing balance at 30 June

2,086

2,196

(2,521)

(2,670)

Deferred tax assets/(liabilities) to be recovered/(paid) after more than 12 months

2,086

2,196

(2,521)

(2,670)

1. Relates to the net impact of the sale of the Group’s controlling interest in A25 and recognition of an equity accounted investment in A25 upon divestment of a 50% ownership interest (refer to Note B21). 2. Prior year amounts have been restated to align with the current year presentation. The Group has $36 million of unrecognised tax losses as at 30 June 2024 (2023: $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 in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit and loss (single transactions where both deductible and taxable temporary differences arise on initial recognition that result in deferred tax assets and liabilities of the same amount are excluded from this exemption) • 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 offset 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 offset 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 tax deductions for investments in qualifying assets (investment allowances). The Group accounts for such allowances as tax credits, which means that the allowance reduces income tax payable and current tax expense. A deferred tax asset is recognised for unclaimed tax credits that are carried forward as tax losses.

132

131

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