Cue Energy Resources Limited Notes to the financial statements 30 June 2025 Note 9. Income tax expense (continued) 41 Consolidated 30 June 2025 30 June 2024 $'000 $'000 Reconciliation of movement in deferred tax balances Opening balance of net deferred tax assets 2,921 4,619 Restoration provisions 129 346 Carried forward losses (4,197) 781 Production, development and exploration and evaluation assets (3,605) (2,765) Other 24 (60) Closing balance of net deferred tax (liabilities)/assets (4,728) 2,921 Consolidated 30 June 2025 30 June 2024 $'000 $'000 Deferred tax not recognised Deferred tax not recognised comprises temporary differences attributable to: Tax losses 22,233 19,421 Net deferred tax not recognised 22,233 19,421 At 30 June 2025, the Consolidated Entity had $74.11 million in unutilised carry forward losses, the tax effect of which is $22.23 million. The potential tax benefit has not been recognised in the statement of financial position as the recovery of this benefit is uncertain. Accounting policy for Income tax The income tax expense for the year is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity. Cue Energy Resources Limited (the ‘head entity’) and its wholly-owned Australian controlled entities have formed an income tax consolidated group under the tax consolidation regime effective 1 July 2010. As a consequence, all members of the tax consolidated group are taxed as a single entity. 53 Cue Energy Resources Limited Annual Report 2025
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