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for the year ended 30 June 2001 

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Potential future income tax benefits at 30 June 2001 for tax losses not brought to account for the consolidated entity are $242,768,000 (gross $809,228,000). These future income tax benefits are not being brought to account as an asset as they do not meet the requirements of note 1g. Legislation has been introduced to reduce the tax rate to 30% from the 2001-2002 income tax year and probable that tax losses not brought to account for the Company will be realised at 30%. 

These benefits of tax losses will only be realised if: 

(i) the consolidated entity derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to be realised; 

(ii) the consolidated entity continues to comply with the conditions for deductibility imposed by tax legislation; and 

(iii) no changes in tax legislation adversely affect the ability of the consolidated entity to realise the benefit from the deductions for the losses. 

The above tax position is based on tax ruling requests relating to borrowing costs and interentity transactions. However, the ATO has not given its opinion in relation to all of these requests. 

