Income Tax Reconciliation

Sep 01

Mar 01

Sep 01

Sep 00

Banking & Other Financial Services

Operating profit before income tax

Australia

1,150

1,166

2,316

2,203

Overseas

1,126

1,052

2,178

1,800

Prima face income tax at 34% (2000: 36%)

774

754

1,528

1,439

Add/(deduct) tax effect of permanent differences:

Non-allowable depreciation on buildings

1

4

5

9

Rebate of tax on dividends, interest etc

(23)

(8)

(31)

(77)

Foreign tax rate differences

(124)

(30)

(154)

(103)

Amortisation of goodwill

-

-

-

-

Future income tax benefits no longer required

(1)

(4)

(5)

10

Restatement of tax timing differences due to changes in the

(1)

20

19

48

Australian company income tax rate

Over provision in prior year

(1)

(13)

(14)

(20)

Other

45

(43)

2

(54)

Total income tax expense

670

680

1,350

1,252

Effective tax rate

29.4%

30.7%

30.0%

31.3%

Wealth Management

Operating profit before income tax

Australia

201

374

575

455

Overseas

25

44

69

15

Operating profit before tax attributable to the statutory funds of the life insurance business

(1)

62

61

222

Total operating profit excluding that attributable to the statutory funds of the life insurance business before income tax

227

356

583

248

Prima face income tax at 34% (2000: 36%)

77

121

198

90

Add/(deduct) tax effect of permanent differences:

Foreign tax rate differences

2

(4)

(2)

-

Amortisation of goodwill

3

-

3

-

Restatement of tax timing differences due to changes in the

(18)

(9)

(27)

(5)

Australian company income tax rate

Under provision in prior year

(3)

2

(1)

-

Other

12

(4)

8

(14)

Total income tax expense on operating profit excluding that attributable to the statutory funds of the life insurance business

73

106

179

71

Income tax attributable to the statutory funds of the life insurance business

(160)

(52)

(212)

108

Total income tax expense/(benefit)

(87)

54

(33)

179

Effective tax rate

(38.4%)

12.9%

(5.1%)

38.1%

HomeSide US

Operating profit before income tax

Overseas

151

102

253

203

Prima facie income tax at 34% (2000: 36%)

52

34

86

73

Add/(deduct) tax effect of permanent differences:

Rebate of tax on dividends, interest etc

-

-

-

-

Impact of lower effective tax rate on HomeSide US's deferred tax

-

-

-

(11)

liabilities

Amortisation of goodwill

16

-

16

-

Foreign tax rate differences

(28)

8

(20)

-

Other

(3)

(5)

(8)

-

Total income tax expense

37

37

74

62

Effective tax rate

24.5%

36.3%

29.3%

30.5%

Reconciliation to Statement of Financial Performance

On-Going Core Operations

Banking & Other Financial Services

Income tax expense

670

680

1,350

1,252

Income tax benefit - significant items

-

-

-

(31)

Wealth Management

Income tax expense/(benefit) - operating profit

(180)

(30)

(210)

123

Income tax expense - revaluation profit

93

84

177

56

Income tax benefit - significant items

-

-

-

(37)

Excess Capital

Income tax expense

40

9

49

56

Non-Core and Disposed Operations

HomeSide US

Income tax expense

37

37

74

62

Income tax benefit - significant items

(320)

-

(320)

-

Michigan National

Income tax expense

-

80

80

151

Disposal of Michigan National

Income tax expense

704

-

704

-

Other Non-Core Operations

Income tax benefit - writedown of e-commerce investments

(7)

-

(7)

-

Income tax benefit - Vivid

-

(6)

(6)

-

Total Income Tax Expense

1,037

854

1,891

1,632