Lendlease Annual Report 2024

Financial Statements 119 June 2024 June 2023 9.a. Income Tax Expense $m $m Recognised in the Income Statement Current Tax Expense Current year 144 62 Adjustments for prior years (40) (13) Current year tax losses not recognised 9 27 Total current tax expense 113 76 Deferred Tax Expense Origination and reversal of temporary differences (383) (192) Temporary differences recognised through income tax expense 215 30 Write-off of prior year net tax losses 168 11 Change in tax rate - (7) Total deferred tax benefit - (158) Income Tax Expense Total income tax expense/(benefit) from continuing operations 113 (6) Total income tax benefit from discontinued operations - (76) Total income tax expense/(benefit) 113 (82) Reconciliation of Effective Tax Rate Loss before tax 1 (1,389) (314) Income tax using domestic corporate tax rate 30% (417) (94) Adjustments for prior year (40) (13) Non assessable and exempt income 2 1 (29) Non allowable expenses 3 183 16 Net write off of tax losses through income tax expense 178 - Temporary differences recognised through income tax expense 4 215 30 Utilisation of capital losses on disposal of assets (1) (14) Effect of tax rates in foreign jurisdictions 5 (4) 29 Other (2) (7) Income tax expense/(benefit) 113 (82) Deferred Tax Recognised Directly in Equity Relating to: Hedging reserve 6 11 Defined benefit plan remeasurements (25) (36) Foreign currency translation reserve (8) (7) Unused revenue tax losses recognised (1) - Total deferred tax recognised directly in equity (28) (32) 1. In the prior year provisions previously recognised in relation to the sold Engineering business were revised to include the associated tax benefit. This resulted in a $76m gross up of the provision and recognition of an equal and offsetting deferred tax asset. There was no net impact on profit after tax from discontinued operations. 2. Includes Lendlease Trust Group loss/(profit). 3. Includes accounting expense for which a tax deduction is not allowed permanently. Current period includes the non-deductible impairment of Construction and Development goodwill attributable to the Americas and Europe regions as a result of the strategy update announced on 27 May 2024. Refer to Note 32 'Intangible assets' for further detail. 4. Includes temporary differences not recognised in the current period which 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. Includes de-recognition of deferred tax assets on carried forward interest deductions. 5. The Group operates in a number of foreign jurisdictions for trading purposes which have 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. June 2024 June 2023 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 (1) (6) (7) 12 (11) 1 Movements in foreign currency translation reserve (56) 8 (48) 113 7 120 Movements in non controlling interest acquisition reserve - - - (4) - (4) Movements in defined benefit plan remeasurements (116) 25 (91) (144) 36 (108) Movements in unused revenue tax losses recognised (1) 1 - - - - Total other comprehensive income net of tax (174) 28 (146) (23) 32 9