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5. Income tax

2019

$'000

2018

$'000

(A) Income tax benefit

Adjustment in respect of deferred income tax of previous year

(416)

643

Deferred tax in respect of the current year

(29,957)

(26,076)

Income tax benefit

(30,373)

(25,433)

Loss before income tax benefit

(99,857)

(86,924)

Tax at the Australian tax rate of 30%

(29,957)

(26,077)

Permanent differences

-

1

(Over)/under provision

(416)

643

Income tax benefit

(30,373)

(25,433)

ETR

2019

$'000

ETR

2018

$'000

(B) Effective tax rates

Loss before income tax

(99,857)

(86,924)

Income tax calculated at 30%

(29,957)

30.00%

(26,077)

Permanent differnces - entertainment

-%

-

-%

-

Prior year adjustments

0.87%

(416)

(0.82%)

712

Income tax benefit

30.87%

(30,373)

29.18%

(25,364)

Deferred tax

Project costs

Provision and accurals

Used tax losses and credits

Total

Opening balance

2,687

24,785

6,677

34,14

Movement: Provision and accurals

-

28,150

-

28,150

Movement: Project costs

35

-

-

35

Movement: Current year losses

-

-

1,760

1,760

Return to provisions

124

-

303

427

Closing balance

2,846

52,935

8,740

64,521

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. The recognition of the deferred tax asset of $64 million is considered appropriate following an assessment of the overall forecast profit and taxation position.

Movements

2019

$'000

2018

$'000

Opening balance at 1 July

34,148

8,715

Credited to the consolidated statement of profit and loss and other comprehensive income

30,373

25,433

Closing balance at 30 June

64,521

34,148