8 Jul 2010

Tax changes forecast to hit property firm's profit

4:05 pm on 8 July 2010

Investment firm Property For Industry says the government's tax changes will reduce its profit by up to 5% in the 2011 financial year.

The Government will cut the company tax rate from 30% to 28% and scrap depreciation on most buildings from July 2010.

The property investor says its accounts will include a $36 million in deferred tax liability relating to depreciation of building structure and a corresponding increase in deferred income tax expense for the six months to June 2010.

The change will not affect its profit or payout to investors, although it will result in a significant unrealised after-tax loss.