ANNUAL REPORT 2011 The tax benefits will only be obtained if the conditions in note 1(f) are satisfied and if: For the purposes of income tax, the company and its 100%-owned Australian subsidiaries have not formed a tax consolidated  group. Tax consolidation is not expected to have a material effect on the consolidated entity’s deferred tax asset. CONSOLIDA TED 2011  2010 $  $ 4.  OTHER INCOME  Interest income  2,448,356  1,876,020 Other  84,825  51,905 2,533,181  1,927,925 5.  EXPENSES Loss from ordinary activities before income tax has been determined after:  Expenses  Other expenses include:  Bank Fees  200,998  90,069 Insurance  258,578  82,756 Public relations  349,871  284,426 Stock exchange listing and compliance fees 279,325  199,561 Travel 1,080,189  672,893 6.  INCOME TAX EXPENSE  (a)  The prima facie tax benefit at 30% on the loss from ordinary activities  is reconciled to the income tax provided in the financial statements as  follows:  Loss from ordinary activities  51,176,313  9,781,000 Prima facie income tax benefit @ 30%  15,352,894  2,934,300 Tax effect of permanent differences:  Share based payments to consultants and employees (1,645,405)  (1,078,348) Share of net losses to associates  (260,251)  (97,994) Share issue costs amortised  1,120,691  1,200,234 Other non-deductible items  (86)  (92,096) Deferred tax asset not brought to account  (14,567,842)  (2,866,096) Income tax expense  -  -  (b)  The potential deferred tax asset arising from tax losses and temporary differences have not been recognised as an asset because recovery of tax losses is not yet considered sufficiently probable.  Australian tax losses  5,588,813  2,940,459 61 (a)  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; (b)  the consolidated entity continues to comply with the conditions for deductibility imposed by the relevant tax  legislation; and (c)  no changes in tax legislation adversely affect the consolidated entity in realising the benefit from the deductions for  losses.