On 30 April 2023, the Australian Government announced it will provide businesses with an annual turnover of less than $50 million with an additional 20% deduction on spending that supports electrification and more efficient use of energy. Designed to help you reduce your energy costs and greenhouse gas emissions.
Eligible assets or upgrades will need to be first used or installed ready for use between 1 July 2023 and 30 June 2024. This measure is not yet law.
The measure will help small businesses make investments like:
- 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.
And remember, you can also qualify to claim depreciation on these newly installed assets.
Author
Peta Stephen
