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Net finance costs
 12 Months Ended
Jun. 30, 2023
Text block [abstract]  
Net finance costs
23     Net finance costs
 
    
2023
     2022     2021  
    
US$M
     US$M     US$M  
Financial expenses
       
Interest expense using the effective interest rate method:
       
Interest on bank loans, overdrafts and all other borrowings
     
997
       491       607  
Interest capitalised at 5.71% (2022: 2.90%; 2021: 2.83%)
1
     
(271
)
 		     (113 )      (204 ) 
Interest on lease liabilities
     
130
       119       102  
Discounting on provisions and other liabilities
     
1,293
       645       353  
Other gains and losses:
       
Fair value change on hedged loans
     
(803
)
 		     (1,286 )      (779 ) 
Fair value change on hedging derivatives
     
691
       1,277       704  
Loss on bond repurchase
2
     
–
       –       395  
Exchange variations on net debt
     
9
       (99 )      99  
Other
     
14
       16       13  
  
 
 
    
 
 
    
 
 
  
Total financial expenses
     
2,060
       1,050       1,290  
  
 
 
    
 
 
    
 
 
  
Financial income
       
Interest income
     
(529
)
 		     (81 )      (67 ) 
  
 
 
    
 
 
    
 
 
  
Net finance costs
     
1,531
       969       1,223  
  
 
 
    
 
 
    
 
 
  
 
1
 
Interest has been capitalised at the rate of interest applicable to the specific borrowings financing the assets under construction or, where financed through general borrowings, at a capitalisation rate representing the average interest rate on such borrowings. Tax relief for capitalised interest is approximately US$81 million (2022: US$34 million; 2021: US$61 million).
 
2
 
Relates to the additional cost on settlement of two multi-currency hybrid debt repurchase programs and the unwind of the associated hedges, included in a total cash payment of US$3,402 million disclosed in repayment of interest bearing liabilities in the Consolidated Cash Flow Statement.
Recognition and measurement
Interest income is accrued using the effective interest rate method. Finance costs are expensed as incurred, except where they relate to the financing of construction or development of qualifying assets.