At 30 June 2023, Burroo Ltd recognised a deferred tax asset of \($30\) 000 and a deferred tax liability of \($45\) 000 by applying an income tax rate of 30%. The government announced that it will increase the tax rate as of 1 July 2023 to 35%. In its deferred tax worksheet for the year ending 30 June 2024, Burroo Ltd calculated that its taxable temporary differences were \($120\) 000 and its deductible temporary differences were \($160\) 000.

Required 

Prepare a report for the chief accountant on how the increase in the income tax rate will affect the application of tax-effect accounting for the year ended 30 June 2024.