As part of its efforts to reduce carbon emissions and promote sustainability, the Australian Government has launched the Small Business Energy Incentive program. This new initiative is designed to encourage small businesses across the country to reduce their energy consumption and improve their energy efficiency, all while saving money on their energy bills.
Let’s take a closer look at the Small Business Energy Incentive program and what it means for small businesses in Australia.
What is the Small Business Energy Incentive program?
The Small Business Energy Incentive program is a government initiative that provides financial incentives to eligible small businesses that make energy-efficient upgrades to their operations. Under the program, eligible small businesses can claim a tax deduction of up to $1,000 for the purchase and installation of eligible energy-saving assets, such as solar panels, energy-efficient lighting, and more.
The program is designed to help small businesses reduce their energy consumption and carbon footprint, while also saving money on their energy bills. By making energy-efficient upgrades to their operations, small businesses can reduce their energy costs and improve their bottom line, all while contributing to Australia’s broader sustainability goals.
Who is eligible for the Small Business Energy Incentive program?
To be eligible for the Small Business Energy Incentive program, businesses must meet certain criteria. Specifically, eligible businesses must have an annual turnover of less than $50 million and be located in Australia. In addition, eligible businesses must have made an eligible energy-efficient asset purchase after 11:45 am AEST on 12 May 2015 and before 1 July 2023.
It’s worth noting that the program is not limited to certain industries or types of businesses. As long as a small business meets the eligibility criteria and makes an eligible energy-efficient asset purchase, it may be eligible for the tax deduction.
How can small businesses claim the tax deduction?
To claim the tax deduction under the Small Business Energy Incentive program, small businesses will need to complete the relevant section of their tax return. Specifically, they will need to complete the “Small business and general business tax break” section of their tax return and provide details of the eligible asset purchase.
It’s also important to keep records of the eligible asset purchase, including invoices and receipts, as these may be requested by the Australian Taxation Office (ATO) as part of an audit.
The Small Business Energy Incentive program is a valuable initiative for small businesses across Australia, providing financial incentives to encourage energy-efficient upgrades and help reduce energy consumption and carbon emissions. By making use of this program, eligible small businesses can save money on their energy bills and contribute to Australia’s broader sustainability goals.
If you’re a small business owner interested in taking advantage of the Small Business Energy Incentive program, be sure to review the eligibility criteria and make an eligible energy-efficient asset purchase before the program’s deadline on 1 July 2023. Contact Halcol Energy to find out more.
