REA Group Ltd Annual Report 2021

Notes to the Consolidated Financial Statements for the year ended 30 June 2021 REA Group Ltd | Annual Report 2021 24. Related parties (continued) (c) Deed of Cross Guarantee Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, relief has been granted to realestate.com.au Pty Limited, Austin Bidco Pty Ltd, PropTrack Pty Ltd (previously Hometrack Australia Pty Limited), Flatmates .com.au Pty Ltd, Smartline Home Loans Pty Ltd, Smartline Operations Pty Limited and iProperty Group Pty Ltd (the ‘Closed Group’) from the Corporations Act 2001 requirements for the preparation, audit and lodgement of separate Financial Statements. As a condition of the Class Order, REA Group Ltd and realestate.com.au Pty Limited entered into a Deed of Cross Guarantee (the ‘Deed’) on 26 May 2009, with all other entities added to the Deed during the 2019, 2020 and 2021 financial years. The effect of the Deed is that REA Group Ltd guarantees to each creditor payment in full of any debt in the event of winding up of the aforementioned entities under certain provisions or if they do not meet their obligations under the terms of overdrafts, loans, leases or other liabilities subject to the guarantee. The controlled entities have also given a similar guarantee in the event that any other party to the Deed is wound up or if it does not meet its obligations under the terms of overdrafts, leases or other liabilities subject to the guarantee. The summarised Consolidated Income Statement, Consolidated Statement of Financial Position and Retained Earnings of the Closed Group are below. Consolidated Income Statement 2021 $’000 2020 $’000 Profit from continuing operations before income tax 505,671 396,710 Income tax expense (156,577) (120,669) Profit for the year 349,094 276,041 Summary of movements in consolidated retained earnings Retained earnings at beginning of the financial year 1,429,019 1,297,575 Earnings for the year 349,094 276,041 Other (39,866) 10,826 Dividends provided for or paid during the year (150,392) (155,423) Retained earnings at end of the financial year 1,587,855 1,429,019 120 Financial Statements