Taxes

6 Months Ended

Jun. 30, 2024

A.5 Taxes


	2024 US$m			2023 US$m
Reconciliation of income tax expense
Profit before tax		2,310			2,828
PRRT expense		(192	)		(778	)

Profit before income tax		2,118			2,050

Income tax expense calculated at 30%		635			615
Effect of tax rate differentials		(15	)		30
Effect of deferred tax assets not recognised		35			67
Effect of tax benefits previously unrecognised 1		(366	)		(340	)
Reduction in deferred tax liability due to held for sale basis 1		(91	)		—
Foreign exchange impact on tax benefit		(11	)		(83	)
Adjustment to prior years		(52	)		(16	)
Other		11			11

Income tax expense		146			284

Subsequent to achieving first oil on the Sangomar project in June 2024, the Group has recognised a net deferred tax asset of $305

million. The remaining $61 million relates to other tax benefits previously unrecognised. The expected sale of Woodside’s

15.1%

share in the Scarborough Joint Venture resulted in the recognition of a net tax benefit of

$91

million. These events have resulted in a reduction of the global effective income tax rate from

25.6% to 6.9%. In the prior period, as a result of the final investment decision to develop the Trion resource, the Group recognised deferred tax assets of $319 million, resulting in a reduction of the global effective income tax rate from 29.6% to 13.9%.

In May 2024, the Parliament of Australia enacted the Treasury Laws Amendment (Tax Accountability and Fairness) Act 2024 for the PRRT deductions cap which takes effect from 1 July 2023. If an entity is an LNG producer and its petroleum projects meet the criteria of the deduction cap, the entity will have a taxable profit of 10% of the projects’ assessable receipts in the year of tax.

The new legislation has impacted the Pluto and Wheatstone projects resulting in the Group recognising a $124 million current tax payable as at 30 June 2024.