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Deferred tax balances

12 Months Ended

Jun. 30, 2024

14 Deferred tax balances

The movement for the year in the Group’s net deferred tax position is as follows:


	2024			2023			2022
	US$M			US$M			US$M
Net deferred tax (liability)/asset
At the beginning of the financial year		(4,243	)		(3,007	)		(1,402	)
Acquisition of subsidiaries and operations 1		–			(867	)		–
Income tax credit/(charge) recorded in the income statement 2,3,4		988			(387	)		(125	)
Income tax (charge)/credit recorded directly in equity		(6	)		6			(42	)
Divestment of subsidiaries and operations 5		(3	)		–			(1,439	)
Other movements		(1	)		12			1

At the end of the financial year		(3,265	)		(4,243	)		(3,007	)

1	Relates to the acquisition of OZL on 2 May 2023. Refer to note 29 ‘Business combinations’ for more information.

2	Includes US$1,125 million income tax credit in the year ended 30 June 2024 as a result of an impairment of Western Australia Nickel Assets.

3	Includes US$(283) million revaluation of deferred tax balances in the year ended 30 June 2023, following the substantive enactment of the Chilean Royalty Bill. Refer to note 3 ‘Exceptional items’ for more information.

4	Includes Discontinued operations income tax charge to the income statement in 2022 of US$(61) million.

5	Relates to the divestment of BMC and merger of Petroleum with Woodside in 2022. Refer to notes 3 ‘Exceptional items’ and 28 ‘Discontinued operations’ for more information.

For recognition and measurement refer to note 6 ‘Income tax expense’.

The composition of the Group’s net deferred tax assets and liabilities recognised in the balance sheet and the deferred tax expense (credited)/charged to the income statement is as follows:


	Deferred tax assets						Deferred tax liabilities						(Credited)/charged to the income statement
	2024			2023			2024			2023			2024			2023			2022
	US$M			US$M			US$M			US$M			US$M			US$M			US$M
Type of temporary difference
Depreciation 1		(756	)		(629	)		5,221			6,259			(894	)		452			554
Exploration expenditure		14			11			–			(1	)		(2	)		(2	)		13
Employee benefits		23			27			(407	)		(425	)		6			(94	)		20
Closure and rehabilitation		155			143			(1,770	)		(1,753	)		(29	)		(296	)		24
Resource rent tax		–			–			–			–			–			–			(129	)
Other provisions		55			64			(196	)		(210	)		23			4			49
Deferred income		–			14			(23	)		–			(9	)		37			(31	)
Deferred charges		(55	)		(82	)		522			644			(148	)		85			7
Investments, including foreign tax credits		274			225			411			370			(6	)		(54	)		(298	)
Foreign exchange gains and losses		(9	)		(14	)		80			190			(115	)		42			33
Tax losses		364			276			(84	)		(214	)		40			37			28
Lease liability 1		9			18			(730	)		(767	)		45			(83	)		(10	)
Other		(7	)		3			308			206			101			259			(135	)

Total		67			56			3,332			4,299			(988	)		387			125

1	Includes deferred tax associated with the recognition of right-of-use assets and lease liabilities on adoption of IFRS 16. Refer to note 22 ‘Leases’.

The composition of the Group’s unrecognised deferred tax assets and liabilities is as follows:


	2024		2023
	US$M		US$M
Unrecognised deferred tax assets
Tax losses and tax credits 1		9,126		8,572
Investments in subsidiaries 2		1,533		1,661
Mineral rights 3		3,216		3,287
Other deductible temporary differences 4		1,978		1,912

Total unrecognised deferred tax assets		15,853		15,432

Unrecognised deferred tax liabilities
Investments in subsidiaries 2		2,307		2,179

Total unrecognised deferred tax liabilities		2,307		2,179

At 30 June 2024, the Group had income and capital tax losses with a tax benefit of US$5,589 million (2023: US$5,709 million) and tax credits of US$3,537 million (2023: US$2,863 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	2024		2023
	US$M		US$M
Income tax losses
Not later than one year		28		22
Later than one year and not later than two years		10		5
Later than two years and not later than five years		43		47
Later than five years and not later than 10 years		652		549
Later than 10 years and not later than 20 years		1,003		1,317
Unlimited		5,620		4,889

		7,356		6,829

Capital tax losses
Not later than one year		–		–
Later than two years and not later than five years		–		–
Unlimited		13,494		13,870

Gross amount of tax losses not recognised		20,850		20,699

Tax effect of total losses not recognised		5,589		5,709

Of the US$3,537 million of tax credits, US$2,792 million expires not later than 10 years (2023: US$2,405 million) and US$745 million expires later than 10 years and not later than 20 years (2023: US$458 million).

The Group has 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.

The Group has deductible temporary differences relating to mineral rights for which deferred tax assets have 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.

The Group has other deductible temporary differences for which deferred tax assets have 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.