INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2014

The components for the provision for income taxes are as follows:

	Year Ended
	June 30,		June 30,
	2014		2013

Current Taxes	$	(48,267)	$	(60,461)
Deferred Taxes		-		-
Income Taxes Expense (Benefit)	$	(48,267)	$	(60,461)

The items accounting for the difference between income taxes at the Australia statutory rate and the provision for income taxes are as follows:

	Year Ended
	June 30,					June 30,
	2014					2013
	Amount		Impact on Rate			Amount		Impact on Rate

Income Tax Expense (Benefit) at Australia Statutory Rate	$	(274,229)		(31.24)	%	$	(492,334)		(32.75)	%

Expenses paid by parent on behalf of foreign subsidiary		92,480		10.54	%		351,935		23.41	%

R&D Refundable Tax Credit		(48,267)		(5.50)	%		(60,461)		(4.02)	%

Reduction of NOL Carryforward Due to R&D Tax Credit		48,267		5.50	%		60,461		4.02	%

Change in deferred Tax Valuation Allowance		260,533		29.68	%		(363,703)		(24.20)	%

Foreign Exchange Rate Changes		(127,051)		(14.47)	%		443,641		29.52	%

Total Income Tax Expense (Benefit)	$	(48,267)		(5.50)	%	$	(60,461)		(4.02)	%

Significant components of the Company's net deferred income taxes are as follows:

	June 30,		June 30,
	2014		2013
Current Deferred Tax Assets
Warrant derivative liability	$	28,209	$	-
Provision for annual leave		18,848		14,813
Superannuation		3,815		3,699
Total Current Deferred Tax Assets	$	50,872	$	18,512

Current Deferred Tax Liabilities
Prepaid Investor Services	$	-	$	-
Prepaid expenses		-		-
Prepaid insurance		-		-
Accounts Payable/trade creditors		-		-
Patent Costs		-		-
Total Current Deferred Tax Liabilities	$	-	$	-

Non-Current Deferred Tax Assets
Prepaid Investor Services	$	751,917	$	1,393,309
Capital Raising Costs		28,622		27,752
Legal Costs		29,019		28,337
Intellectual Property		14,288		13,854
Patent Costs		59,473		32,425
Formation Expense		8,757		8,491
Net Operating Loss Carryover		3,259,060		2,418,795
Foreign Exchange Loss (OCI)		90,859		73,377
Total Non-Current Deferred Tax Assets		4,241,995		3,996,340
Deferred Tax Valuation Allowance		(4,292,867)		(4,014,852)
Total Non-Current Deferred Tax Assets		(50,872)		(18,512)

Total Deferred Tax Assets (Net)	$	-	$	-