Port of Tauranga Faces AU$12.9 million Profit Hit Due to Tax Changes

Port of Tauranga Limited (NZX: POT) announced that new tax legislation will impact its Group Net Profit After Tax by AU$12.9 million for the year ending 30 June 2024. CEO Leonard Sampson explained that changes to depreciation on commercial buildings necessitate a one-off deferred tax expense, reducing the reported profit.

This accounting adjustment does not affect cash flows, and the company still expects a normalized 2024 operating profit in the range of AU$95 million to AU$107 million. The legislation changes, which have oscillated since 2010, complicate the tax position on commercial buildings. The company’s recalculations, reviewed by an external advisor, reflect these legislative shifts. The annual results will be announced on 23 August 2024.

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