Tax Transparency Report 2024

A note from the Chief Financial Officer

Woolworths Group is a large and diverse business, serving millions of customers and hundreds of communities every week. We are mindful of our responsibilities as a significant contributor to the economy including being the largest private-sector employer in both Australia and New Zealand.

Woolworths Group pursues an approach to tax that is principled, transparent and sustainable for the long term. Our approach to tax management is to ensure full compliance with all statutory obligations, full disclosure to revenue authorities, maintenance of documented policies and procedures in relation to tax risk management and completion of risk assessments including escalation and reporting to the Board where appropriate. We have received a high assurance rating from the Australian Taxation Office (ATO) with regard to both the Group's income tax and goods and services tax (GST) affairs.

This report provides an overview of the Woolworths Group tax strategy, governance and tax contributions made to Australian Territory, State and Commonwealth governments.

The information provided in this Report is released on a voluntary basis in accordance with the recommendations and guidelines contained in the Board of Taxation's Voluntary Tax Transparency Code. It should be read with Woolworths Group's 2024 Annual Report which can be found on our website at www.woolworthsgroup.com.au

Woolworths Group has a strong commitment to transparency and compliance from a regulatory and financial perspective, including with respect to its tax strategy and compliance.

Stephen Harrison

Chief Financial Officer

Tax Transparency Report

Tax policy, strategy, and governance

Woolworths Group's tax corporate governance and tax operating framework is guided by the Board's Tax Corporate Governance Policy. This policy, recommended by the Audit and Finance Committee (AFC) and approved by the Board, sets out the approach to be taken by the Group in conducting its tax affairs and dealings with tax risk and is periodically reviewed by the AFC and actively managed by the Group Tax Team.

Woolworths Group pursues an approach to tax that is principled, transparent, and sustainable for the long term. The Group has implemented appropriate internal controls in relation to the identification and management of tax risk and a framework for escalation of tax matters to the Woolworths Group Board, as necessary.

The Woolworths Group Board operates several Committees that oversee key business risks including the AFC which oversees financial risk management and the effectiveness of internal controls across the Group, including tax. There is regular reporting on tax matters to the AFC.

A low risk tax strategy is adopted by the Woolworths Group to ensure there is no damage to its reputation or risk profile with the Australian Taxation Office (ATO).

Tax laws are inherently complex and are subject to interpretation. Woolworths Group ensures that, as a minimum, the tax position adopted with regard to particular issues or transactions is more likely than not to be correct. This is achieved through:

• Early engagement of the Group Tax team in the formative consideration and practical implementation of transactions;
• Using external advisors to assist the Group Tax team in areas that are complex or uncertain; and,
• Obtaining tax rulings from the ATO on complex and uncertain areas of the law.

Engagement with revenue authorities

Woolworths Group seeks a proactive and cooperative relationship with the ATO and other relevant taxation authorities with which it interacts and seeks to maintain this relationship through regular communication, particularly with regard to significant transactions that the group has entered into or is considering entering into.

The Woolworths Group is also engaged in ongoing dialogue with the ATO regarding its assurance and review processes, in particular the Justified Trust Reviews. Woolworths Group has received a high assurance rating with respect to both its income tax and GST affairs as part of the ATO's Justified Trust review.

Where appropriate, the Woolworths Group also seeks to engage in consultation with the Government on tax matters, particularly with regard to improvements to existing processes and commentary on proposed tax changes.

Tax Transparency Report

Reconciliation of accounting profit to income tax expense

The reconciliation of accounting profit to tax expense contained in this Report was previously published in Woolworths Group's 2024 Annual Report in section 2.4.2 of Notes to the Consolidated Financial Statements. The disclosure was prepared for the statutory accounts in accordance with the relevant Australian Accounting Standards. These statutory accounts reflect Woolworths Group Limited and its subsidiaries for the 52 week period ended 30 June 2024.

Income tax expense, reported on a company's income statement, is calculated by multiplying accounting profit for the year, adjusted for non-temporary differences, by the relevant corporate tax rate (30 per cent in Australia).

Tax Transparency Report

Reconciliation from income tax expense to current year income tax payable

Effective company tax rates for Australian and global operations

Effective tax rate is calculated as income tax expense divided by profit before tax.

Effective Tax Rate - Group 2

1. The F24 effective tax rate of 31% reflects the impact of an excess of non-deductible expenses over non-assessable income.
2. The F24 Group effective tax rate including significant items is 87% which is largely driven by the tax effect of the non-deductible $1.5B impairment of goodwill associated with the New Zealand Supermarkets business and the $209M book loss recorded from the deemed disposal and reacquisition at fair value of the Group's investment in Endeavour Group Limited offset by the non-assessable gain on the reduction of the put liabilities over the Group's investments in Quantium and PFD Food Services.
3. Group operations includes the Group's offshore businesses in New Zealand, Hong Kong, Singapore, the US, UK and South Africa.

Tax Transparency Report

Tax Contribution Summary

The following tables and diagrams detail the types of taxes paid and collected by Woolworths Group Limited and its subsidiaries (including controlled non-wholly owned subsidiaries) to and/or on behalf of Australian Federal, State and local governments in the 2024 financial year. For FY24, controlled non-wholly owned subsidiaries and the Woolworths Group ownership percentage were: The Quantium Group Holdings Pty Ltd (78%), PFD Food Services Pty Ltd (65%), Statewide Independent Wholesalers Limited (60%), MyDeal.com.au Limited (80.2%) and PETstock Pty Ltd (55%).

1. Corporate Income Tax paid reflects F24 income tax instalments paid during the year and final tax payments for the FY23 year.
2. The net GST represents GST collected on Australian taxable sales less the applicable input tax credits claimed on supplies.

Tax Transparency Report

International related party dealings

Woolworths Group operates in Australia, New Zealand and across the Asian region. The nature of activities conducted outside of Australia during 2024 are summarised below:

The key business dealings between Woolworths Group Australian operations and overseas controlled entities during

2024 are summarised below:

• Providing management and administration services
• Sales and purchases of trading stock to and from overseas controlled entities
• Recharges of costs relating to information technology and insurance costs incurred by Woolworths Group Australia
• Employment related recharges of costs incurred by Woolworths Group Australia on behalf of overseas subsidiaries
• Revenue and expenditure relating to financing arrangements with New Zealand subsidiaries.

All international related party dealings are conducted in accordance with arm's length principles and methodologies as prescribed by the Australian transfer pricing laws and in accordance with the Organisation of Economic Cooperation and Development (OECD) guidelines.

Further information

Further information and publications about Woolworths Group and its operations are available from the Group's website www.woolworthsgroup.com.au