Speciality Metals International Limited Annual Report 2020

Speciality Metals International Limited Annual Report 2020 43 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Page | 44 2. REVENUE AND OTHER INCOME 2020 2019 Revenue $ $ Sales and hire income 735,480 - Sub-lease rent (unincorporated joint venture) 1,455 - Interest received – other persons/corporation 11,643 22,515 748,578 22,515 Other income COVID-19 Relief (Various) 107,228 - R&D Tax Offset 199,186 - Gain on disposal of non-current assets - 212,434 Diesel fuel rebates 32,453 10,239 Other income - 748 338,867 223,421 Total revenue and other income 1,087,445 245,936 3. INCOME TAX 2020 2019 (a) Reconciliation of income tax expense to prima facie tax payable $ $ Profit / (loss) before income tax (3,015,680) 3,808,863 Tax at the Australian rate of 27.5% (2019: 27.5%) (829,312) 1,047,437 Tax effect of amounts which are not taxable in calculating taxable income: Non-deductible expenses 11,725 89,713 Non-assessable income (54,776) (1,485,010) Deferred tax assets not recognised 872,363 347,860 - - (b) Unrecognised deferred tax assets Balance at beginning of year 5,583,942 5,236,082 Current year not recognized 872,363 347,860 Adjustments in respect of prior year tax balances (876,769) - Tax rate change from 27.5% to 26% (360,268) - Balance at end of year 5,219,268 5,583,942 Deferred tax assets have not been recognized in respect of the following items: Tax losses 6,278,688 5,589,329 Less: other timing differences (1,059,420) (5,387) 5,219,268 5,583,942 - (c) Total tax losses 24,148,795 20,324,832 Total deferred tax benefits which may arise (2019: 26%) 6,278,688 5,589,329