Notes to the Financial Statements
As at the reporting date, the Group also has accumulated capital losses that arose within the Company. At the current time, it is unlikely that the capital losses can be recouped and no DTA is recognised in respect of these losses. Deferred tax asset – AASB 17 transition and income tax losses As a result of the transition to AASB 17, the Group’s accounting net life insurance contract liability, for which the carrying amount will be settled in future periods has increased. This results in an increase in the deductible temporary differences and a related deferred tax asset of $35.9 million on transition and a further $3.5 million in FY23 bringing the total related deferred tax asset to $39.4 million, given the movement in the net life insurance contract liability is deductible when settled in the future. While the Australian Taxation Office ( ATO ) and Treasury has yet to provide any announcement or guidance in respect of the AASB 17 impacts on life insurance companies, there is no indication that AASB 17 will result in a change to the income tax laws. During the 2024 year, in addition to the income tax deductions of $131.3 million (deferred tax asset of $39.4 million) due to the net movement in the net life insurance contract liability on AASB 17 transition, the Group further incurred an income tax loss from its operations of $14.7 million. This resulted in a carried forward income tax loss of $146 million. Given that it is probable that the Group’s future taxable profit will be available against which the tax losses can be utilised, the deferred tax asset of $43.8 million has been recognised on balance sheet as at 30 June 2024.
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ClearView Annual Report 2024
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