23 Jun 2010

Warehouse predicts lower profit due to Budget changes

12:59 pm on 23 June 2010

The Warehouse is the latest big company to be hit by tax changes announced in the Budget, saying its after-tax profit for the year ending August will be reduced by about $23 million.

The listed retailer says this is due to the removal of the ability to depreciate buildings for tax purposes, coupled with a lower corporate tax rate.

However, it says, the deferred tax liability is a one-off, non-cash accounting entry, which will not affect the company's underlying profitability, cash flows or dividends.