XML 108 R20.htm IDEA: XBRL DOCUMENT
v3.21.2

Deferred tax balances | 12 Months Ended
--- | ---
Jun. 30, 2021
Text block [abstract] |
Deferred tax balances | 14 Deferred tax balances The movement for the year in the Group’s net deferred tax position is as follows:
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  | US$M |  |  | US$M Restated |  |  | US$M Restated |
Net deferred tax (liability)/asset |  |  |  |  |  |  |  |  |  |  |  |
At the beginning of the financial year |  |  | (91 | ) |  |  | (491 | ) |  |  | 569 |
Impact of change in accounting policies (1) |  |  | – |  |  |  | – |  |  |  | (1,021 | )
Income tax (charge)/credit recorded in the income statement (2) |  |  | (1,325 | ) |  |  | 335 |  |  |  | (81 | )
Income tax credit recorded directly in equit y |  |  | 42 |  |  |  | 34 |  |  |  | 15 |
Other movements |  |  | (28 | ) |  |  | 31 |  |  |  | 27 |
At the end of the financial year |  |  | (1,402 | ) |  |  | (91 | ) |  |  | (491 | )
(1) | Deferred tax has been restated to reflect changes to the Group’s accounting policy following a decision by the IFRS Interpretations Committee on IAS 12 ‘Income Taxes’, resulting in the retrospective recognition of US$1,021 million of Deferred tax. Refer to note 39 ‘New and amended accounting standards and interpretations and changes to accounting policies’ for further information.
(2) | Includes Discontinued operations income tax credit to the income statement of US$ nil (2020: US$ nil; 2019: US$40 million).
For recognition and measurement refer to note 6 ‘Income tax expense’. Th e composition of the Group’s net deferred tax assets and liabilities recognised in the balance sheet and the deferred tax expense charged/(credited) to the income statement is as follows:
|  | Deferred tax assets |  |  | Deferred tax liabilities |  |  | Charged/(credited) to the income statement |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |  |  | 2019 |
|  | US$M |  |  | US$M |  |  | US$M |  |  | US$M Restated |  |  | US$M |  |  | US$M |  |  | US$M |
Type of temporary difference |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation (1)(2) |  |  | (1,349 | ) |  |  | (2,749 | ) |  |  | 4,716 |  |  |  | 2,828 |  |  |  | 488 |  |  |  | 1,394 |  |  |  | (951 | )
Exploration expenditur e |  |  | 51 |  |  |  | 398 |  |  |  | – |  |  |  | – |  |  |  | 347 |  |  |  | 51 |  |  |  | 43 |
Employee benefits |  |  | 94 |  |  |  | 353 |  |  |  | (333 | ) |  |  | (26 | ) |  |  | (68 | ) |  |  | (38 | ) |  |  | 14 |
Closure and rehabilitation |  |  | 638 |  |  |  | 2,100 |  |  |  | (2,086 | ) |  |  | (109 | ) |  |  | (515 | ) |  |  | (334 | ) |  |  | (53 | )
Resource rent tax |  |  | 122 |  |  |  | 359 |  |  |  | 368 |  |  |  | 921 |  |  |  | (309 | ) |  |  | (119 | ) |  |  | (179 | )
Other provisions |  |  | 108 |  |  |  | 173 |  |  |  | (227 | ) |  |  | (239 | ) |  |  | 77 |  |  |  | (268 | ) |  |  | (2 | )
Deferred income |  |  | 11 |  |  |  | (4 | ) |  |  | (16 | ) |  |  | – |  |  |  | (31 | ) |  |  | 33 |  |  |  | (9 | )
Deferred charges |  |  | (36 | ) |  |  | (383 | ) |  |  | 602 |  |  |  | 187 |  |  |  | 68 |  |  |  | (132 | ) |  |  | 56 |
Investments, including foreign tax credits |  |  | 147 |  |  |  | 348 |  |  |  | 671 |  |  |  | 458 |  |  |  | 414 |  |  |  | (77 | ) |  |  | 70 |
Foreign exchange gains and losses |  |  | (3 | ) |  |  | (134 | ) |  |  | 133 |  |  |  | (61 | ) |  |  | 63 |  |  |  | (18 | ) |  |  | (45 | )
Tax losses |  |  | 1,999 |  |  |  | 2,759 |  |  |  | (82 | ) |  |  | – |  |  |  | 678 |  |  |  | (148 | ) |  |  | 1,147 |
Lease liability (1) |  |  | 68 |  |  |  | 548 |  |  |  | (658 | ) |  |  | (245 | ) |  |  | 67 |  |  |  | (793 | ) |  |  | – |
Other |  |  | 62 |  |  |  | (80 | ) |  |  | 226 |  |  |  | 65 |  |  |  | 46 |  |  |  | 114 |  |  |  | (10 | )
Total |  |  | 1,912 |  |  |  | 3,688 |  |  |  | 3,314 |  |  |  | 3,779 |  |  |  | 1,325 |  |  |  | (335 | ) |  |  | 81 |
(1) | Includes deferred tax associated with the recognition of right-of-use assets and lease liabilities on adoption of IFRS 16. Refer to note 21 ‘Leases’.
(2) | FY2020 has been restated to reflect the impact of the change to the Group’s accounting policy following a decision by the IFRS Interpretations Committee on IAS 12 ‘Income Taxes’. Refer to note 39 ‘New and amended accounting standards and interpretations and changes to accounting policies’ for further information.
The amount of deferred tax assets dependent on future taxable profits not arising from the reversal of existing deferred tax liabilities, and which relate to tax jurisdictions where the taxable entity has suffered a loss in the current or preceding year, was US$1,675 million at 30 June 2021 (2020: US$2,865 million). For operating assets, the group assesses the recoverability of these deferred tax assets using estimates and assumptions relating to projected earnings and cash flows as applied in the Group impairment process for associated operations. Further information on the key judgements and estimates relating to the recognition of deferred tax assets is provided in note 6 ‘Income tax expense’. T he composition of the Group’s unrecognised deferred tax assets and liabilities is as follows:
|  | 2021 |  |  | 2020 |
|  | US$M |  |  | US$M Restated |
Unrecognised deferred tax assets |  |  |  |  |  |  |  |
Tax losses and tax credits (1) |  |  | 5,944 |  |  |  | 4,088 |
Investments in subsidiaries (2) |  |  | 1,712 |  |  |  | 1,575 |
Deductible temporary differences relating to PRRT (3) |  |  | 2,402 |  |  |  | 2,079 |
Mineral rights (4) |  |  | 3,359 |  |  |  | 3,265 |
Other deductible temporary differences (5) |  |  | 1,630 |  |  |  | 673 |
Total unrecognised deferred tax assets |  |  | 15,047 |  |  |  | 11,680 |
Unrecognised deferred tax liabilities |  |  |  |  |  |  |  |
Investments in subsidiaries (2) |  |  | 2,203 |  |  |  | 2,375 |
Future taxable temporary differences relating to unrecognised deferred tax asset for PRRT (3) |  |  | 720 |  |  |  | 624 |
Total unrecognised deferred tax liabilities |  |  | 2,923 |  |  |  | 2,999 |
(1) | At 30 June 2021, the Group had income and capital tax losses with a tax benefit of US$3,569 million (2020: US$2,405 million) and tax credits of US$2,375 million (2020: US$1,683 million), which are not recognised as deferred tax assets, because it is not probable that future taxable profits or capital gains will be available against which the Group can utilise the benefits.
The gross amount of tax losses carried forward that have not been recognised is as follows:
Year of expiry |  | 2021 |  |  | 2020 |
|  | US$M |  |  | US$M |
Income tax losses |  |  |  |  |  |  |  |
Not later than one year |  |  | 13 |  |  |  | 474 |
Later than one year and not later than two years |  |  | 5 |  |  |  | 240 |
Later than two years and not later than five years |  |  | 105 |  |  |  | 2,525 |
Later than five years and not later than 10 years |  |  | 1,449 |  |  |  | 679 |
Later than 10 years and not later than 20 years |  |  | 3,347 |  |  |  | 2,379 |
Unlimited |  |  | 4,799 |  |  |  | 2,262 |
|  |  | 9,718 |  |  |  | 8,559 |
Capital tax losses |  |  |  |  |  |  |  |
Not later than one year |  |  | – |  |  |  | – |
Later than two years and not later than five years |  |  | – |  |  |  | – |
Unlimited |  |  | 4,238 |  |  |  | 4,150 |
Gross amount of tax losses not recognised |  |  | 13,956 |  |  |  | 12,709 |
Tax effect of total losses not recognised |  |  | 3,569 |  |  |  | 2,405 |
Of the US$2,375 million of tax credits, US$1,805 million expires not later than 10 years and US$570 million expires later than 10 years and not later than 20 years.
(2) | The Group had deferred tax assets and deferred tax liabilities associated with undistributed earnings of subsidiaries that have not been recognised because the Group is able to control the timing of the reversal of the temporary differences and it is not probable that these differences will reverse in the foreseeable future. Where the Group has undistributed earnings held by associates and joint interests, the deferred tax liability will be recognised as there is no ability to control the timing of the potential distributions.
(3) | The Group had unrecognised deferred tax assets relating to Australian Petroleum Resource Rent Tax (PRRT). Recognition of a deferred tax asset for PRRT depends on benefits expected to be obtained from the deduction against PRRT liabilities . As PRRT payments are deductible for income tax purposes, to the extent these PRRT deferred tax assets are recognised this would give rise to a corresponding deferred tax liability for income tax (presented as the future taxable temporary differences relating to the unrecognised PRRT deferred tax assets).
(4) | The Group had deductible temporary differences relating to mineral rights for which deferred tax assets had not been recognised because it is not probable that future capital gains will be available against which the Group can utilise the benefits. The deductible temporary differences do not expire under current tax legislation.
(5) | The Group had other deductible temporary differences for which deferred tax assets had not been recognised because it is not probable that future taxable profits will be available against which the Group can utilise the benefits. The deductible temporary differences do not expire under current tax legislation.

X
- Definition Text block. + References No definition available. + Details
Name: | bhp_TextBlockAbstract
Namespace Prefix: | bhp_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of deferred taxes. [Refer: Deferred tax liabilities; Deferred tax assets] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2020-01-01 -Paragraph 10 -Subparagraph e -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2020-en-r&anchor=para_10_e&doctype=Standard -URIDate 2020-01-01 + Details
Name: | ifrs-full_DisclosureOfDeferredTaxesExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration