Income tax expense (Tables)

12 Months Ended

Jun. 30, 2019


	2019		2018		2017
	US$M		US$M		US$M
Total taxation expense comprises:
Current tax expense		5,408		5,052		4,412
Deferred tax expense		121		1,955		31

		5,529		7,007		4,443

	2019				2018				2017
		US$M				US$M				US$M
Total taxation expense comprises:
Current tax expense			5,408				5,052				4,412
Deferred tax expense			121				1,955				31

			5,529				7,007				4,443


		2019				2018				2017
		US$M				US$M				US$M
Factors affecting income tax expense for the year
Income tax expense differs to the standard rate of corporation tax as follows:
Profit before taxation			15,049				14,751				11,137

Tax on profit at Australian prima facie tax rate of 30 per cent			4,515				4,425				3,341

Impact of US tax reform
Tax rate changes			–				1,390				–
Non-tax effected operating losses and capital gains			–				834				–
Tax on remitted and unremitted foreign earnings⁽¹⁾			–				194				–
Recognition of previously unrecognised tax assets			–				(95	)			–
Other			–				(3	)			–

Subtotal			–				2,320				–
Other items not related to US tax reform
Non-tax effected operating losses and capital gains			742				721				242
Tax on remitted and unremitted foreign earnings			283				401				478
Tax effect of (loss)/profit from equity accounted investments, related impairments and expenses⁽²⁾			164				(44	)			(82	)
Tax rate changes			6				(79	)			25
Recognition of previously unrecognised tax assets			(10	)			(170	)			(21	)
Amounts over provided in prior years			(21	)			(51	)			175
Foreign exchange adjustments			(25	)			(152	)			88
Investment and development allowance			(94	)			(180	)			(53	)
Impact of tax rates applicable outside of Australia			(312	)			(484	)			(136	)
Other			87				172				219

Income tax expense			5,335				6,879				4,276

Royalty-related taxation (net of income tax benefit)			194				128				167

Total taxation expense			5,529				7,007				4,443

⁽¹⁾	Comprising US$797 million repatriation tax and US$603 million of previously unrecognised tax credits.

⁽²⁾	The (loss)/profit from equity accounted investments, related impairments and expenses is net of income tax. This item removes the prima facie tax effect on such (loss)/profit, related impairments and expenses.

Income tax recognised in other comprehensive income is as follows:


	2019			2018			2017
	US$M			US$M			US$M
Income tax effect of:
Items that may be reclassified subsequently to the income statement:
Available for sale investments:
Net valuation losses taken to equity		–			(3	)		–
Hedges:
Gains/(losses) taken to equity		98			(25	)		(105	)
(Gains)/losses transferred to the income statement		(90	)		64			129

Income tax credit relating to items that may be reclassified subsequently to the income statement		8			36			24

Items that will not be reclassified to the income statement:
Remeasurement gains/(losses) on pension and medical schemes		7			(22	)		(12	)
Employee share awards transferred to retained earnings on exercise		12			8			(14	)

Income tax credit/(charge) relating to items that will not be reclassified to the income statement		19			(14	)		(26	)

Total income tax credit/(charge) relating to components of other comprehensive income⁽¹⁾		27			22			(2	)

⁽¹⁾	Included within total income tax relating to components of other comprehensive income is US$15 million relating to deferred taxes and US$12 million relating to current taxes (2018: US$17 million and US$5 million; 2017: US$12 million and US$(14) million).