Small Business Energy Incentive

Posted 13 Jul '23

Small business operators will be provided with a new tax incentive "to help propel their energy transformation".

The Small Business Energy Incentive aims to support about 3.8 million small and medium-sized enterprises across the nation, helping them conserve energy and cut down on energy costs.

A major highlight of this incentive is the bonus tax deduction - businesses boasting an annual turnover of less than $50 million will be eligible for an additional 20% deduction on expenditures related to energy efficiency and electrification.

This could mean a wide array of energy-related investments, such as upgrading to efficient refrigeration systems or induction cooktops, electrifying heating and cooling systems, or even installing cutting-edge batteries and heat pumps.

This initiative is designed to stimulate investments that promise enduring power bill savings for businesses. But the benefits extend far beyond the financial sphere; it also facilitates Australia’s journey towards lowering 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.

To qualify for the incentive, the eligible assets or upgrades need to be first used or installed and ready for use between 1 July 2023 and 30 June 2024. The Government expects this measure to cost around $314 million over the forward estimates.

For more information, visit the Australian Government website.

At Trinity Advisory, we specialise in tax accounting, advisory services, and business coaching for small businesses located in and around Cairns (116 Mulgrave Road, Parramatta Park QLD 4870) and the Sunshine Coast (2/8 Maroochydore Road, Maroochydore QLD 4558).

Should you need any taxation or accounting advice for your business, get in touch with Trinity Advisory today. Our team of expert Business Accountants, Advisors and Coaches are here to help!

Ref: Treasurer's joint media release, 30 April 2023


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