Lendlease Annual Report 2022

Financial Statements 131 June 2022 June 2021 9.a. Income Tax Expense $m $m Recognised in the Income Statement Current Tax Expense Current year 200 132 Adjustments for prior years 3 (4) Current year tax losses (recognised)/written off (51) 40 Total current tax expense 152 168 Deferred Tax Expense Origination and reversal of temporary differences (222) (65) Temporary differences recovered/recognised 17 7 Recognition of prior year net tax losses 19 (7) Change in tax rate (16) (31) Total deferred tax (benefit) (202) (96) Income Tax Expense Total income tax (benefit)/expense from continuing operations (51) 68 Total income tax expense from discontinued operations 1 1 4 Total income tax (benefit)/expense 2 (50) 72 Reconciliation of Effective Tax Rate (Loss)/profit before tax (149) 294 Income tax using domestic corporate tax rate 30% (45) 88 Adjustments for prior year 3 (4) Non assessable and exempt income 3 (45) (40) Non allowable expenses 4 5 7 Net write off of tax losses through income tax expense 34 39 Temporary differences recognised through income tax expense 5 17 7 Utilisation of capital losses on disposal of assets (56) (13) Effect of tax rates in foreign jurisdictions 6 (9) (26) Other 7 46 14 Income tax (benefit)/expense 2 (50) 72 Deferred Tax Recognised Directly in Equity Relating to: Hedging reserve 39 2 Impact of adoption of new accounting standard - 4 Defined benefit plans remeasurements 6 41 Foreign currency translation reserve 11 (6) Non controlling interest acquisition reserve - 3 Total deferred tax recognised directly in equity 56 44 1. Refer to Note 33 ‘Discontinued Operations’ for further detail. 2. Represents income tax benefit from continuing operations of $51 million and income tax expense from discontinued operations of $1 million. June 2021 results have been re-presented for discontinued operations during the period. Refer to Note 33 'Discontinued Operations' for further details. 3. Includes Lendlease Trust Group profit. 4. Includes accounting expenses for which a tax deduction is not allowed permanently. 5. Includes temporary differences not recognised in the current year that are written off to income tax expense in the current period and temporary differences that arose in a previous year but were not recognised until the current period. 6. The Group operates in a number of foreign jurisdictions for trading purposes which have significantly lower tax rates than Australia such as the United Kingdom and Singapore and higher tax rates such as the United States of America (blended federal, state and local rate) and Japan. This also includes the effect of changes in tax rates. 7. Includes additional tax expense associated with the capital gain on divestment of assets. JUNE 2022 JUNE 2021 9.b. Tax Effect Relating to Other Comprehensive Income Before Tax Tax (Expense)/ Benefit Net of Tax Before Tax Tax (Expense)/ Benefit Net of Tax $m $m $m $m $m $m Movements in hedging reserve 175 (39) 136 17 (2) 15 Movements in foreign currency translation reserve 74 (11) 63 (114) 6 (108) Movements in non controlling interest acquisition reserve (5) - (5) 6 - 6 Movements in defined benefit plans remeasurements 50 (6) 44 52 (41) 11 Total other comprehensive income net of tax 294 (56) 238 (39) (37) (76)