2019 DOMAIN TAX

TRANSPARENCY REPORT

DOMAIN HOLDINGS AUSTRALIA LIMITED | ABN 43 094 154 364

MESSAGE FROM THE CHIEF FINANCIAL OFFICER

I am pleased to present the Tax Transparency Report for Domain Holdings Australia Limited

consolidated group (Domain) for the year ended 30 June 2019.

Domain is a leading ASX listed Australian real estate and media services business. Our product

suite includes digital listings portals, print magazines, real estate agent services and transactional

services. Domain formed a tax consolidated group on 22 November 2017 following the demerger

from Fairfax Media Limited.

From the outset, Domain is committed to continuing the high standard of principled tax

governance adopted when it was a member of the Fairfax Media group. Domain has a robust

tax governance framework across the group, with a view to ensuring compliance with tax laws

and regulatory guidance.

Domain welcomes the recommendations of the Board of Taxation’s Tax Transparency Code and

has prepared this report based on the recommendations for ‘medium businesses’. This report

provides an overview of Domain’s tax contributions made to Australian State and

Commonwealth governments, and reflects Domain’s commitment to transparency and integrity

across tax matters.

Further information can be found at Domain’s Shareholder website including the 2019 Annual

Report.

Robert Doyle

Chief Financial Officer

TAX PAID ANALYSIS

All of Domain’s taxes are paid in Australia given that the group’s operations are located in

Australia. In addition to company Income Tax, Domain pays Fringe Benefits Tax (FBT) and Payroll

Tax. Domain also collects and pays ‘Pay as You Go Withholding’ (PAYGW) on behalf of its

employees and Goods and Services Tax (GST).

Set out below is a summary of the taxes paid, collected and remitted by Domain to Australian

revenue authorities during the financial year ended 30 June 2019.

DOMAIN GROUP

2019

$’000 (AUD)

Tax type

On own behalf

Company Income Tax 20.4

FBT 1.2

Payroll Tax 5.0

On behalf of others

GST 17.6

PAYGW 25.1

Total 69.3

ACCOUNTING PROFIT TO INCOME TAX PAYABLE RECONCILIATION

Reconciliation of statutory Profit/(Loss) to income tax expense and

income tax payable

DOMAIN GROUP

2019

$’000 (AUD)

Profit/(Loss) before income tax (119,148)

Income tax expense calculated at 30% (35,744)

Tax effect of differences:

Adjustments in respect of current income tax of pervious years (2,761)

Deferred tax assets and deferred tax loss not recognised 2,166

Share of results of associates and joint ventures 93

Share based payments 399

Non-deductible impairment of goodwill 53,654

Non-assessable income (2,747)

Non-deductible expenses 678

Other 294

Total income tax expense (Note 1) 16,032

Effective tax rate (Note 2) (13.5%)

Adjusted for temporary differences:

Current year timing differences 3,827

Prior period (over)/under 2,761

Tax payments in respect of current year (8,286)

Amendment to prior year income tax return 1,261

Other balance sheet movements 247

Income tax payable 15,842

Note 1: Includes the impact of non-temporary differences related to significant items.

Note 2: The effective tax rate for FY19 includes the impact of the non-deductible

impairment of goodwill and other items treated as significant. After adjusting for the

significant items the effective tax rate for FY19 is 30.8%.