Cue Energy Resources Limited Notes to the financial statements 30 June 2026 41 Note 9. Income tax expense Consolidated 30 June 2026 30 June 2025 $'000 $'000 Income tax expense Current tax 5,579 4,720 Adjustment for prior period tax provision 588 971 (Recognition)/derecognition of future tax losses (643) 2,159 Deferred tax - origination and reversal of temporary differences (2,591) 5,492 Aggregate income tax expense 2,933 13,342 Numerical reconciliation of income tax expense and tax at the statutory rate Profit before income tax expense 7,293 19,658 Tax at the statutory tax rate of 30% 2,188 5,897 Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Recognition of deferred tax (assets)/liabilities (496) 2,822 Difference in overseas tax rates (700) 2,469 Differences arising from the application of royalty regimes 1,157 1,191 Other balances and permanent differences 196 (8) 2,345 12,371 Adjustment for prior period tax provision 588 971 Income tax expense 2,933 13,342 The Consolidated Entity's effective tax rate for the year ended 30 June 2026 was 40% (30 June 2025: 67%). Consolidated 30 June 2026 30 June 2025 $'000 $'000 Deferred tax included in income tax expense comprises: (Increase)/decrease in deferred tax assets (764) 5,046 (Decrease)/increase in deferred tax liabilities (2,470) 2,605 Deferred tax (3,234) 7,651 Consolidated 30 June 2026 30 June 2025 $'000 $'000 Current tax liabilities 3,893 3,742 The Consolidated Entity has an ongoing Indonesian Tax matter relating to a notice of amended assessment which is being disputed by Cue Kalimantan Pte Ltd on behalf of SPC E&P Pte Ltd (SPC). Cue is indemnified by SPC for any losses arising from this disputed notice of assessment and has recognised a liability and receivable on the balance sheet. 54 Cue Energy Resources Limited Annual Report 2026
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