The Warehouse is the latest to warn budget changes to deferred tax calculations will affect its bottom line and has lowered its full-year profit forecast by $23 million.
Budget tax changes announced last month include the 2% reduction in the corpor
The Warehouse is the latest to warn budget changes to deferred tax calculations will affect its bottom line and has lowered its full-year profit forecast by $23 million.
Budget tax changes announced last month include the 2% reduction in the corporate tax rate to 28% and removal of the ability to depreciate buildings for tax purposes from August next year.
As a result, the listed retailer said it would increase the group’s deferred tax liability and reduce its reported net profit after tax by about $23 million, for the year to August 1.
Yesterday, casino operator Sky City said its full-year earnings would take a $60 million hit from deferred tax liability adjustments.
Deferred tax liability is a one-off, non-cash accounting entry which had no impact on underlying profitability, cash flows or dividend payments.
However, The Warehouse said further adjustments could follow the government’s review of the definition of ‘building structure’ for tax purposes.
Shares in The Warehouse were up 1c at $3.51 at midday.
