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 2020 $'000 | June 2019 $'000 | |
Loss from continuing operations before income tax | (23,476) | (11,664) |
Tax at the Australian tax rate of 30.0% (2019 - 30.0%) | 7,043 | 3,499 |
Non-deductible expenses | (1,197) | (127) |
Tax adjustments relating to prior years | - | 55 |
Restatement of deferred balances | (465) | - |
Income tax benefit | 5,381 | 3,427 |
(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 2020 | June 2019 | |
Net deferred tax on revaluation | 14,957 | - |
(d) Deferred tax balances
Net position as presented in the statement of financial position:
June 2020 | June 2019 | |
Net deferred tax liabilities | ||
Deferred tax assets | 22,459 | 18,909 |
Deferred tax liabilities | (60,184) | (47,024) |
(37,725) | (28,115) |
(i) Deferred tax assets
June 2020 | June 2019 | ||
The balance comprises temporary differences attributable to: | |||
Property, plant and equipment | 14,116 | 15,491 | |
Tax losses carried forward | 7,704 | 3,065 | |
Sundry items | 639 | 353 | |
22,459 | 18,909 | ||
Movements | Property, plant and equipment | Tax losses | Other items | Total |
$’000 | $’000 | $’000 | $’000 | |
At 1 July 2018 | 15,454 | 884 | 132 | 16,470 |
Charged/(credited) | ||||
- to profit or loss | 37 | 2,181 | 221 | 2,439 |
- to other comprehensive income | - | - | - | - |
At 30 June 2019 | 15,491 | 3,065 | 353 | 18,909 |
At 1 July 2019 | 15,491 | 3,065 | 353 | 18,909 |
Adjusted on adoption of AASB 16 | (34) | - | - | (34) |
Adjusted opening balance at 1 July 2019 | 15,457 | 3,065 | 353 | 18,875 |
Charged/(credited) | ||||
- to profit or loss | (1,341) | 4,639 | 286 | 3,584 |
- to other comprehensive income | - | - | - | - |
At 30 June 2020 | 14,116 | 7,704 | 639 | 22,459 |
(ii) Deferred tax liabilities
June 2020 | June 2019 | ||
The balance comprises temporary differences attributable to: | |||
Property, plant and equipment | 60,043 | 46,908 | |
Sundry items | 141 | 116 | |
60,184 | 47,024 | ||
Movements | Property, plant and equipment | Other items | Total |
$’000 | $’000 | $’000 | |
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 |
At 1 July 2019 | 46,908 | 116 | 47,024 |
Charged/(credited) | |||
- to profit or loss | (1,822) | 25 | (1,797) |
- to other comprehensive income | 14,957 | - | 14,957 |
At 30 June 2020 | 60,043 | 141 | 60,184 |
(iii) Net deferred tax
June 2020 | June 2019 | |
The net balance comprises temporary differences attributable to: | ||
Property, plant and equipment | (45,927) | (31,417) |
Tax losses | 7,704 | 3,065 |
Other items | 498 | 237 |
(37,725) | (28,115) |
Visit
https://www.transparency.gov.au/annual-reports/australian-naval-infrastructure-pty-ltd/reporting-year/2019-20-45