The Property Council of Australia has welcomed the Federal Treasurer’s Small Business Energy Incentive that encourages small and medium businesses to undertake energy efficiency and electrification upgrades.
The upfront costs of improving equipment are often a deterrence to business looking to reduce energy bills, even though the ongoing savings outweigh the initial capital costs.
“Supporting upgrades to make Australian businesses more efficient and productive at a time of rising costs is sound policy,” Property Council Chief Executive Mike Zorbas said.
“Switching to more efficient appliances and upgrading from gas to highly efficient electric heating and cooling, hot water and cooking will reduce energy bills and emissions.
“Targeted tax incentives like the additional 20 per cent deduction announced today can be the difference between a business taking action on upgrades or holding off and continuing to pay more for energy,” he said.
The bonus tax deduction allows businesses with annual turnover of less than $50 million an additional 20 per cent deduction on efficiency and electrification upgrades. Eligible assets or upgrades will need to be first used or installed ready for use between 1 July 2023 and 30 June 2024, with up to $100,000 total expenditure eligible for the incentive.
Earlier this week, the Property Council and Green Building Council were joined by Assistant Minister for Climate Change and Energy, Jenny McAllister, to launch Every Building Counts, a policy pathway toward zero-carbon-ready and resilient buildings. The report calls for targeted tax incentives to drive increased performance, including extensions to the instant asset write off for equipment upgrades and green depreciation for larger upgrades.
Read more at www.everybuildingcounts.com.au