Small businesses with an annual turnover of less than $50 million can invest in energy-efficient assets and upgrades
As part of the Albanese Government’s plan to support small businesses, the small business energy incentive has been announced to help small- and medium-sized businesses save energy and reduce their energy bills.
The Small Business Energy Incentive, which is expected to cost $314 million over the forward estimates, will provide eligible businesses with an additional 20% tax deduction on spending that supports electrification and more efficient use of energy.
This means that small businesses with an annual turnover of less than $50 million can invest in energy-efficient assets and upgrades, such as:
- Electrifying their heating and cooling systems
- Upgrading to more efficient fridges and induction cooktops
- Installing batteries and heat pumps
Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business. To be eligible for the incentive, eligible assets or upgrades must be first used or installed ready for use between 1 July 2023 and 30 June 2024.
For more information, see the Hon Dr Jim Chalmers MP joint media release Small Business Energy IncentiveExternal Link, 30 April 2023.