Boosting Small Businesses with the Small Business Energy Incentive

‍As part of the Australian Government's commitment to supporting small businesses and promoting energy efficiency, a new tax incentive known as the Small Business Energy Incentive was announced on 30 April 2023.

This incentive aims to assist small businesses in their energy transformation efforts, helping them save on energy costs while contributing to a more sustainable future. The Attune Advisory team is here to provide you with all the essential information you need to take advantage of this incentive, starting with some of the details as outlined below…

‍The Small Business Energy Incentive:

The Small Business Energy Incentive offers businesses with an annual turnover of less than $50 million an additional 20% tax deduction on expenditures that support electrification and more efficient energy usage. This means eligible small businesses can invest in assets or upgrades that promote energy efficiency and sustainability.

Eligible Investments:

The incentive allows small businesses to make investments in various areas, including:

• Electrifying heating and cooling systems to reduce reliance on traditional energy sources.
• Upgrading to more energy-efficient fridges and induction cooktops, minimising energy wastage.
• Installing batteries and heat pumps to optimise energy usage and reduce dependence on the grid.

‍Maximum Deduction and Eligible Expenditure:

Small businesses can claim a maximum bonus tax deduction of$20,000 through this incentive. The total expenditure eligible for the incentive is capped at $100,000. By leveraging this incentive, you can not only save on energy costs but also enhance the financial health of your business!

‍Timeline and Legislative Status:

To be eligible for the Small Business Energy Incentive,assets or upgrades must be first used or installed ready for use between 1 July2023 and 30 June 2024. It is important to note that this measure is not yetlaw. Stay updated on the latest developments and consult with the AttuneAdvisory team for personalised guidance based on your specific circumstances.

Benefits and Opportunities:

Small businesses play a vital role in our communities, and the Small Business Energy Incentive ensures they can actively participate in the ongoing energy transition. By making investments that lead to energy savings, small businesses can lower their operational costs and contribute to reducing emissions. The incentive aligns with the government's efforts to build a stronger, sustainable, and resilient economy, creating more opportunities for all Australians.

Looking to the Future:

The Small Business Energy Incentive, with an expected cost of $314 million over the forward estimates, has been strategically introduced to support small businesses in laying the foundations for future growth. It positions them to bounce back after a challenging period for the economy, allowing them to embrace energy efficiency and sustainability, leading to long-term success.

Contact Attune Advisory today to learn more about how this incentive can benefit your business and ensure compliance with the evolving legislation. We’re here to offer you tailored, strategic advice to set you up for success. Call the team on 1300 866 113 or send us an email to start the conversation.

The information provided in this blog post isbased on the available information as of the date of writing. Please consultwith us for the latest updates and personalised advice related to the SmallBusiness Energy Incentive.