McConnell Dowell 2019 Annual Review

65 Annual Review 2019 Consolidated All figures are in A$ 000’s Note 2019 2018 6. Taxation Current income tax: Current tax expense 1,532 2,544 Adjustment in respect of current year income tax of previous year 72 752 Deferred tax: Relating to origination, reversal and impairment of temporary differences (79) 251 Income tax expense reported in statement of profit or loss 1,525 3,547 Accounting profit / (loss) before income tax 9,310 11,523 Income tax expense at the statutory income tax rate of 30% (2018: 30%) 2,793 3,457 Adjusted for: Permanent differences and Non-assessable income 786 (1,497) Share of (profit) / loss of associates 1,097 191 Withholding tax expensed 1,298 1,182 Utilisation of previously unrecognised losses (4,425) (3,146) Tax losses not recognised 758 4,353 Adjustment in respect of current income tax of previous year 72 (1,431) Effects of lower rates of tax on overseas income (1,059) 145 Other items 206 293 Income tax expense reported in statement of profit or loss 1,525 3,547 No tax credit was recognised directly in equity during the year (2018, in whole dollars: tax credit of $442,000) (see note 24). A reconciliation of income tax expense applicable to accounting profit before income tax at the statutory income tax rate to income tax expense at the Group’s effective income tax rate for the years ended 30 June 2019 and 2018 is as follows: -