LAU has tax losses carried forward to 2023 from prior years....

LAU has tax losses carried forward to 2023 from prior years. These tax losses are included in the deferred tax asset recognised on the balance sheet. At 30 June 2022 LAU included within their deferred tax asset tax losses worth (at 30%) $5.1 million.

As the tax losses are used, the deferred tax asset is written off hence the tax expense in the income statement. However as no tax is paid to the ATO there are no franking credits available to attach to dividends.

Arguably it makes little difference to the net dividend received by shareholders. Because there is no cash cost with the tax expense, LAU has more cash available to fund dividends and therefore the dividend paid is probably greater than it would otherwise be. Once ATO tax payments resume, the same gross dividend rate (cash plus franking credits) can be funded leaving shareholders in the same position after tax.