Livestock Improvement Corporation (LIC) has updated its earnings guidance for the 2023-24 financial year, citing a change in New Zealand's income tax legislation.

The farmer-owned co-operative now estimates its underlying earnings for FY24 to be in the range of $13 million to $15m, down from the previous range of $17m to $22m.

The adjustment is a result of a one-off, non-cash impact from the tax legislation change, which removed the ability to depreciate commercial buildings for tax purposes.

LIC said the change had led to a $4m accounting adjustment, increasing its tax expense and deferred tax liability balance.

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