$20K Small Business Energy Incentive

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In a pre-budget announcement made last month (April 2023) the Government has committed to a Small Business Energy Incentive Scheme that offers a bonus tax deduction of up to $20,000. Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business. The goal is to help small businesses make investments like electrifying their heating and cooling systems, upgrading to more efficient fridges and induction cooktops, and installing batteries and heat pumps. Continue reading to learn more about the incentive. 

What’s Involved

The Small Business Energy Incentive Scheme offers a compelling opportunity for small and medium businesses, boasting an aggregated turnover of less than $50 million, to embrace energy-efficient practices and investments. By encouraging businesses to prioritise “electrification” and optimise energy usage, this scheme aims to drive sustainability and cost savings.

Under this scheme, eligible businesses can enjoy significant benefits, with up to $100,000 of total expenditure being eligible for the incentive. Each business can claim a maximum bonus tax deduction of $20,000, providing a substantial financial boost for implementing energy-saving measures. To qualify for the bonus deduction, eligible assets or upgrades must be utilised or installed and ready for use between 1 July 2023 and 30 June 2024.

If your business is considering upgrading to enhance energy efficiency, it is prudent to await further details of this proposal. As soon as more information becomes available, we will promptly share the specifics of the scheme and explore how your business can take advantage of this opportunity. Stay tuned for valuable insights on how your business can benefit from the Small Business Energy Incentive Scheme.

Look out for the 2023-24 Budget

Tradespeople, manufacturers, restaurants, hairdressers, real estate agents, and other small businesses play a vital role in communities throughout Australia. Despite their significance to the economy, these establishments often find themselves overshadowed by larger corporations when it comes to budget priorities. However, the Albanese Government has recognised the importance of supporting small businesses as a fundamental part of its vision for a stronger, sustainable, and more resilient economy.

In line with this commitment, the Small Business Energy Incentive has been introduced to ensure that these businesses can reap the rewards and embrace the opportunities presented by the ongoing energy transition. This incentive serves as a catalyst, allowing small businesses to actively participate in the transition towards cleaner and more efficient energy practices.

The timing of this incentive is especially strategic, aiming to assist small businesses in establishing a solid foundation for future growth and recovery following a challenging period for the economy. By taking advantage of this opportunity, small businesses can position themselves for a successful rebound and propel their operations to new heights.

For more information on the budget and what will affect your circumstances, refer to the Government site on the budget here.

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