Note 8. Income Tax Equivalent Expense
|
2019 |
2018 |
|
|---|---|---|
|
$'000 |
$'000 |
|
|
Income tax equivalent expense |
||
|
Current tax |
8,320 |
7,504 |
|
Deferred tax - origination and reversal of temporary differences |
(260) |
86 |
|
Aggregate income tax equivalent expense |
8,060 |
7,590 |
|
Deferred tax included in income tax equivalent expense comprises: |
||
|
Decrease/(increase) in deferred tax assets (note 17) |
(260) |
86 |
|
Numerical reconciliation of income tax equivalent expense and tax at the statutory rate |
||
|
Surplus before income tax equivalent expense |
24,658 |
26,695 |
|
Tax at the statutory tax rate of 30% |
7,397 |
8,009 |
|
Tax effect amounts which are not deductible/(taxable) in calculating taxable income: |
||
|
Non-deductible expense/(Non-taxable income) |
623 |
(460) |
|
National Acoustic Laboratories exempt from income tax equivalent |
40 |
41 |
|
Income tax equivalent expense |
8,060 |
7,590 |
The above amounts have been calculated as being payable to the Australian Government in the form of company income tax under the Income Tax Assessment Acts had they applied, in accordance with the accounting policy for competitive neutrality (note 9).
Accounting policy for taxation
Hearing Australia is exempt from all forms of taxation except fringe benefits tax ('FBT') and goods and services tax ('GST').
Revenues, expenses and assets are recognised net of GST except for: (i) where the amount of GST incurred is not recoverable from the Australian Taxation Office ('ATO'); and (ii) receivables and payables.
Visit
https://www.transparency.gov.au/annual-reports/hearing-australia/reporting-year/2018-2019-57