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The effective tax rate is higher than its five-year average (around 28-29%) due to adjustments for non-deductible expenses in the current and prior years such as fines, penalties, and amortisation for accounting purposes of certain expenses. Further, in recent years when profit before tax has been lower, positive prior year adjustments such as research and development has had a greater impact on reducing the effective tax rate.

FY20

FY21

FY22

FY23

FY24

Effective tax rate

28.3%

27.0%

23.2%

26.7%

30.5%

Notes

Effective tax rate refers to underlying income tax expense expressed as a percentage of Underlying Profit.