24 Jun 2010

Tax changes will cost Fletcher Building $30m

6:42 pm on 24 June 2010

Fletcher Building says tax changes will cost it an extra $30 million this financial year.

The Government will remove depreciation allowances on buildings and lower the company tax rate from 30% to 28% from July next year.

The building products and construction firm estimates it will be required to increase its provision for deferred tax by $30 million, though it stresses that this is a one-off accounting charge that won't affect its underlying profitability or dividend payout.

Fletcher Building also notes that the elimination of the tax deductibility on buildings will result in a small increase in future income tax payments.