The next month's Budget will feature a new tax incentive to assist small business owners accelerate their energy transformation.
The Small Business Energy Incentive will assist up to 3.8 million small and medium-sized enterprises in conserving energy and reducing their energy expenses.
The energy incentive will provide businesses with less than $50 million in annual revenue with an additional 20% deduction on electrification and energy efficiency expenditures.
It will assist small enterprises in making investments such as electrifying their heating and cooling systems, converting to more energy-efficient refrigerators and induction cooktops, and installing batteries and heat pumps.
Small businesses such as tradespeople, manufacturers, restaurants, florists, and real estate agents are the backbone of communities across Australia. This incentive ensures that these businesses reap the benefits and opportunities of the current energy transition.
It will support investments that provide businesses with ongoing electricity bill savings, while also assisting Australia in reducing emissions.
Up to $100,000 in total expenditures will qualify for the incentive, with a $20,000 maximum tax deduction per business.
The first use or installation of eligible assets or enhancements must occur between 1 July 2023 and 30 June 2024.
This measure is anticipated to cost $314 million over the next fiscal year.
The incentive has been strategically scheduled to assist small businesses in laying the groundwork for their future development and regaining their footing after an economic downturn.
Investing in small businesses is a component of the Albanese administration's strategy to create a stronger, more resilient economy that provides more opportunities for more Australians.
To know more about how you can make this work for you, contact us.
Comments