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6. Taxation

(a) Income tax (benefit)/expense

Accounting policy

Income tax on profit or loss for the year comprises current and deferred tax. Income tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Expense

Policy

Current tax

Represents the expected tax payable on taxable income for the year, using tax rates enacted or substantially enacted at the statement of financial position date, and any adjustment to tax payable in respect of previous years.

Deferred tax

Represents the expense relating to future tax consequences of all transactions undertaken in the current year regardless of when their tax impact may occur.

(b) Numerical reconciliation of income tax expense to prima facie tax payable

June 2019

June 2018

$’000

$’000

(Loss)/profit from continuing operations before income tax

(11,664)

(5,423)

Tax at the Australian tax rate of 30.0% (2018 - 30.0%)

3,499

1,627

Non-deductible expenses

(127)

-

Tax adjustments relating to prior years

55

-

Income tax benefit / (expense)

3,427

1,627

(c) Amounts recognised directly in equity

Aggregate current and deferred tax arising in the reporting period and not recognised in net profit or loss but directly debited or credited to equity.

June 2019

June 2018

$’000

$’000

Net deferred tax

-

1,895

(d) Deferred tax balances

Net position as presented in the statement of financial position

June 2019

June 2018

$’000

$’000

Net deferred tax liabilities

Deferred tax assets

18,909

16,470

Deferred tax liabilities

(47,024)

(48,012)

(28,115)

(31,542)

(i) Deferred tax assets

June 2019

June 2018

$’000

$’000

The balance comprises temporary differences attributable to:

Property, plant and equipment

15,491

15,454

Tax losses carried forward

3,065

884

Sundry items

353

132

18,909

16,470

Movements

Property, plant and equipment

Other items

Total

$’000

$’000

$’000

At 1 July 2017

10,847

-

10,847

Charged/(credited) - profit or loss

(40)

926

886

Acquisition

4,647

90

4,737

At 30 June 2018

15,454

1,016

16,470

At 1 July 2018

15,454

1,016

16,470

Charged/(credited) - profit or loss

37

2,402

2,439

Acquisition

-

-

-

At 30 June 2019

15,491

3,418

18,909

(ii) Deferred tax liabilities

June 2019

June 2018

$’000

$’000

The balance comprises temporary differences attributable to:

Property, plant and equipment

46,908

47,895

Sundry items

116

117

47,024

48,012

Movements

Property, plant and equipment

Sundry items

Total

$’000

$’000

$’000

At 1 July 2017

46,740

118

46,858

Charged/(credited)

- to profit or loss

(740)

(1)

(741)

- to other comprehensive income

1,895

-

1,895

At 30 June 2018

47,895

117

48,012

At 1 July 2018

47,895

117

48,012

Charged/(credited)

- to profit or loss

(987)

(1)

(988)

- to other comprehensive income

-

-

-

At 30 June 2019

46,908

116

47,024

(iii) Net deferred tax

June 2019

June 2018

$’000

$’000

The net balance comprises temporary differences attributable to:

Property, plant and equipment

(31,417)

(32,441)

Sundry items

3,302

899

(28,115)

(31,542)