Company: WEBNF
Filing Date: 2025-11-04
Form Type: 20-F
Source: 0001104659-25-105894
Chunk: 28

Company: WESTPAC BANKING CORP
Filing Date: 2025-11-04
Form: 20-F
Item: Item 14
Chunk 28
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 on a net basis.Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available to utilise the assets.Deferred tax is not recognised for the following temporary differences:●The initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither the accounting nor taxable profit or loss;●The initial recognition of goodwill in a business combination; and●Retained earnings in subsidiaries which the Parent Entity does not intend to distribute for the foreseeable future.The Parent Entity is the head entity of a tax consolidated group with its wholly owned Australian subsidiaries. All entities in the tax consolidated group have entered into a tax sharing agreement which, in the opinion of the Directors, limits the joint and several liabilities in the case of a default by the Parent Entity.Current and deferred tax are recognised using a ‘group allocation basis’. As head entity, the Parent Entity recognises all current tax balances and deferred tax assets arising from unused tax losses and relevant tax credits for the tax-consolidated group. The Parent Entity fully compensates/is compensated by the other members for these balances.
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WESTPAC GROUP 2025 ANNUAL REPORT
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NOTES TO THE FINANCIAL STATEMENTS

Note 7.Income tax (Continued)
Income tax expenseThe following table reconciles income tax expense to the profit before income tax expense.
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                                            ​                                                ​      ​      ​      ​      ​      ​      ​      ​      ​       ​  
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​                                                                                             ​                         Consolidated    ​          Parent Entity
$m                                                                                                  2025          2024          2023         2025           2024
Profit before income tax                                                                          10,044        10,107        10,305        8,985          9,216
Tax at the Australian company tax rate of 30%                                                      3,013         3,032         3,092        2,696          2,765
The effect of amounts which are not deductible/(assessable) in calculating taxable income:                                                                      
Hybrid capital distributions                                                                         129           139           117          129            139
Dividend adjustments                                                                                   1             -             3        (295)          (379)
Other non