Income tax expense (Tables)

12 Months Ended

Jun. 30, 2022


	2022		2021		2020
	US$M		US$M		US$M
			Restated		Restated
Total taxation expense comprises:
Current tax expense		10,673		9,018		4,285
Deferred tax expense/(benefit)		64		1,598		(88	)

		10,737		10,616		4,197

Summary of Factors Affecting Income Tax Expense


	2022			2021			2020
	US$M			US$M			US$M
				Restated			Restated
Factors affecting income tax expense for the year
Income tax expense differs to the standard rate of corporation tax as follows:
Profit before taxation		33,137			24,292			12,825

Tax on profit at Australian prima facie tax rate of 30 per cent		9,941			7,288			3,847

Non-tax effected operating losses and capital gains 1		1,087			2,640			409
Tax on remitted and unremitted foreign earnings		441			485			225
Investment and development allowance		–			–			(99	)
Tax rate changes		–			(1	)		(8	)
Recognition of previously unrecognised tax assets		(3	)		(28	)		(7	)
Tax effect of loss from equity accounted investments, related impairments and expenses 2		(19	)		315			153
Amounts (over)/under provided in prior years		(80	)		(57	)		13
Foreign exchange adjustments		(233	)		(33	)		41
Impact of tax rates applicable outside of Australia		(801	)		(669	)		(272	)
Other		97			436			(86	)

Income tax expense		10,430			10,376			4,216

Royalty-related taxation (net of income tax benefit)		307			240			(19	)

Total taxation expense		10,737			10,616			4,197

1	Includes the tax impacts related to the exceptional impairments of US deferred tax assets in the year ended 30 June 2022 , NSWEC and Potash in the year ended 30 June 2021 and Cerro Colorado in the year ended 30 June 2020, as presented in note 3 ‘Exceptional items’.

The loss from equity accounted investments, related impairments and expenses is net of income tax, with the exception of the Samarco forward exchange derivatives described in note 4 ‘Significant events – Samarco dam failure’. This item removes the prima facie tax effect on such loss, related impairments and expenses, excluding the impact of the Samarco forward exchange derivatives which are taxable.

Income tax recognised in other comprehensive income is as follows:

Summary of Income Tax Recognised in Other Comprehensive Income


	2022			2021			2020
	US$M			US$M			US$M
Income tax effect of:
Items that may be reclassified subsequently to the income statement :
Hedges:
Gains/(losses) taken to equity		274			(259	)		94
(Gains)/losses transferred to the income statement		(264	)		252			(89	)
Others		–			(1	)		–

Income tax credit/(charge) relating to items that may be reclassified subsequently to the income statement		10			(8	)		5

Items that will not be reclassified to the income statement:
Remeasurement gains/(losses) on pension and medical schemes		(9	)		(21	)		25
Others		–			1			1

Income tax (charge)/credit relating to items that will not be reclassified to the income statement		(9	)		(20	)		26

Total income tax credit/(charge) relating to components of other comprehensive income 1		1			(28	)		31

1	Included within total income tax relating to components of other comprehensive income is US$1 million relating to deferred taxes and US$ nil relating to current taxes (2021: US$(28) million and US$ nil; 2020: US$31 million and US$ nil ).