Small business energy incentive
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.
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.
Tradies, manufacturers, restaurants, hairdressers, real estate agents and other small businesses are the backbone of communities across Australia. This incentive helps ensure these businesses share in the benefits and opportunities of the energy transition that’s now underway.
It will support investments that deliver ongoing power bill savings for businesses, while at the same time helping Australia lower emissions.
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 incentive has been specially timed to help small businesses lay the foundations for their future growth and position them to bounce back after a challenging period for the economy.
Backing in small business is part of the Albanese Government’s plan to build a stronger, sustainable and more resilient economy that delivers more opportunities for more Australians.
