In a time when creating environmentally sustainable business practices has never been more important, it is essential for businesses to lead the way in developing effective and efficient ways to reduce emissions and move to a cleaner future.

The government has recognized that the current challenging economic conditions hinder businesses, especially small to medium businesses’ ability to invest in new and approved technologies and assets that aid in reducing their harmful impact on the environment as well as reducing costs of energy.

The Small Business Energy Incentive is a new tax incentive that aims to help up to 3.8 million small and medium businesses save energy as well as save on their energy bills. The tax incentive provides businesses with an annual turnover of $50 million or less a further 20% deduction on any expenses that enables the transition to electrification and more efficient energy usage.

Small and medium businesses will be eligible to receive a maximum tax deduction of $20,000 on a total expenditure of $100,000 for investments such as electrifying their heating and cooling systems, upgrading to more efficient fridges and induction cooktops, and installing batteries and heat pumps. The tax incentive can be applied to assets or upgrades that are first used or installed and ready to be used 1 July 2023 and 30 June 2024.

Written for you by Aaron Jones