New Energy Incentive for Small Businesses: Boosting Electrification and Efficiency

In a move to support sustainable business practices and energy efficiency, the Australian Government made a significant announcement on 30 April 2023. The new Small Business Energy Incentive aims to encourage businesses to adopt electrification and make more efficient use of energy.

Who's Eligible?

Businesses boasting an annual turnover of less than $50 million stand to benefit from this incentive.

What's the Offer?

Eligible businesses can avail an additional 20% deduction on expenditures that promote electrification and energy efficiency. However, to qualify, the assets or upgrades must be first used or installed and ready for use between 1 July 2023 and 30 June 2024. It's important to note that while this measure has been announced, it hasn't been enacted into law yet.

What Investments Are Covered?

The incentive is designed to cover a range of energy-efficient investments, including:

• Electrifying heating and cooling systems.

• Upgrading to energy-efficient fridges and induction cooktops.

• Installing modern batteries and heat pumps.

How Much Can Businesses Save?

Businesses can claim this incentive on up to $100,000 of total expenditure. This means the maximum bonus tax deduction a business can avail is $20,000.

This initiative not only aids businesses in reducing their energy costs but also aligns with global efforts to promote sustainable and eco-friendly practices. If you're considering making energy-efficient upgrades to your business, now might be the perfect time.

At GMB Partners, we're always on the lookout for ways to help our clients thrive. If you have questions about this new incentive or need guidance on how to best leverage it for your business, don't hesitate to reach out to our expert team. Together, we can chart a path to a greener and more prosperous future.