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Small business energy incentive

Posted 23 Jul '24

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.


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