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Note 5: Income tax expense

Consolidated

2020

2020

$

$

Note 5A: Income tax recognised in profit or loss

Tax expense comprises:

Current tax (benefit)/expense in respect of the current year - continuing operations

(92,339)

144,118

Current tax expense in respect of the current year - discontinued operations

(122,669)

(60,285)

Current tax

(215,008)

83,833

Deferred tax (benefit)/expense relating to the origination and reversal of temporary differences - continuing operations

(168,321)

4,763

Deferred tax expense/(benefit) relating to the origination and reversal of temporary differences - discontinued operations

3,091

(9,671)

Total income tax (benefit)/expense

(390,238)

78,925

The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense / (benefit) in the financial statements as follows:

Profit (loss) before income tax

(1,164,883)

366,649

Income tax (benefit)/expense calculated at 30% (2019: 30%)

(349,465)

109,994

Effect of expenses that are not deductible in determining taxable profit

(2,946)

2,386

Franking credit benefit

(7,627)

-

Prior year adjustment

(20,200)

-

Change in effective tax rate

-

(33,455)

Income tax (benefit)/expense in statement of comprehensive income

(380,238)

78,925

The tax rate used in the above reconciliation is the corporate tax rate payable by Australian corporate entities on taxable profits under Australian tax law.

Note 5B: Franking Credits

Opening balance

2,507,663

2,507,663

Tax paid

83,833

-

Franked distribution received

25,847

-

Closing balance

2,617,343

2,507,663

Note 5C: Current tax assets

Current tax assets

Income tax receivable

12,046

-

Total current tax asset

12,046

-

Note 5D: Current tax liabilities

Current tax liabilities

Income tax payable

-

83,833

Total current tax liabilities

-

83,833

Note 5E: Deferred tax balances

Consolidated

Deferred tax assets / (liabilities) arise from the following:

Opening Balance

Charged to Income

Recognised directly in profit or loss

Recognised directly in equity

Total

2020

$

$

$

$

$

Temporary differences

Investments

(58,616)

-

101,728

-

43,112

Prepayments

(4,535)

-

(360)

-

(4,895)

Property, plant & equipment and Intangible assets

3,076

-

8,856

-

11,932

Other assets

(2,849)

-

- (23,296)

-

(26,145)

Accrued expenses

6,428

-

1,548

-

7,976

Employee benefits

411,890

-

78,974

-

490,864

Provision for audit fees

14,430

-

870

-

15,300

Discontinued operations

3,091

-

(3,091)

-

-

372,915

-

165,229

-

538,144

Tax loss current year

202,962

Presented on the statement of financial position as follows:

Deferred tax liability attributable to continuing operations

371,583

Deferred tax liability attributable to discontinued operations

-

371,583

Deferred tax asset attributable to continuing operations

909,727

Deferred tax asset attributable to discontinued operations

-

Deferred tax asset attributable to tax loss

202,962

1,112,689

2019

$

$

$

$

$

Temporary differences

Investment

-

-

(58,616)

-

(58,616)

Prepayments

(46,365)

-

41,830

-

(4,535)

Property, plant & equipment and Intangible assets

9,847

-

(6,771)

-

3,076

Other assets

102,070

-

(104,919)

-

(2,849)

Accrued expenses

3,848

-

2,580

-

6,428

Employee benefits

289,932

-

121,958

-

411,890

Provision for audit fees

12,155

-

2,275

-

14,430

Fringe benefit and payroll tax

3,101

-

(3,101)

-

-

Discontinued operations

(6,581)

-

9,672

-

3,091

368,007

-

4,908

-

372,915

Presented on the statement of financial position as follows:

Deferred tax liability attributable to continuing operations

62,979

Deferred tax liability attributable to discontinued operations

17,803

80,782

Deferred tax asset attributable to continuing operations

432,804

Deferred tax asset attributable to discontinued operations

20,893

453,697