Small businesses with less than $50 million annual turnover, will be able to deduct $1.20 for every $1 spent on expenditure that supports electrification and more efficient use of energy.

This bonus deduction will be available for expenditure incurred from 1 July 2023 until 30 June 2024. It applies to eligible assets or upgrades first used or installed ready for use during this period.

The measure will help small businesses make investments like:

• electrifying their heating and cooling systems,
• upgrading to more efficient fridges and induction cooktops, and
• installing batteries and heat pumps.

The additional deduction will be available for eligible expenditure of up to $100,000 and is therefore capped at $20,000 for each business. Note that that this incentive does not apply to solar panels or electric cars.

This has not yet been legislated. We will monitor and keep you updated.

Disclaimer

The information provided in this article does not constitute advice. The information is of a general nature only and does not take into account your individual financial situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.