In the 2023-24 Budget, the Australian Government announced an energy incentive for small businesses. Here's what it means:
- Eligibility: Small businesses with an annual turnover of less than $50 million.
- Incentive: An extra 20% tax deduction on spending to improve energy efficiency and electrification.
- Time Frame: Applies to spending between 1 July 2023 and 30 June 2024.
-
Eligible Expenses: Includes buying new assets or improving existing ones to save energy, such as:
- Electrifying heating and cooling systems
- Upgrading to more efficient refrigerators and induction cooktops
- Installing batteries and heat pumps.
- Limit: Up to $100,000 of spending is eligible, with a maximum bonus tax deduction of $20,000 per business.
This incentive is now a law and aims to help small businesses reduce their energy costs and become more environmentally friendly.
