The Federal Government has announced an extra 20 per cent tax deduction for small businesses looking to invest in and benefit from installing more efficient appliances and better heating options, such as batteries and heat pumps.
The Small Business Energy Incentive supports small businesses with a turnover of less than $50 million to invest in heat pumps, as well as a range of essential electrification products, designed to help use energy more efficiently and cut power bills.
Any business that invests up to $100,000 will see a bonus tax deduction of $20,000, which means businesses can pick and choose from a range of great options available in the marketplace right now to begin the process of cutting their energy bills.
The Smart Energy Council supports the initiative and said it has been promoting better use of the tax system to incentivise the switch to energy efficient products.
As part of the rebate, any small business with a hot water system can upgrade to a heat pump made in Australia. Cafés and restaurants will also be able to benefit by using the incentive to make the switch from very expensive gas to commercial induction cooktop options and tradespeople can ditch their generators and switch to batteries.
Supporting small businesses to cut their power bills while helping cut emissions is vital to Australia’s efforts to reach 2030 emissions targets.
The Government said that by ensuring small businesses can take part in the energy revolution, cheaper energy costs can be passed on to customers.
The Small Business Energy Incentive is consistent with the Smart Energy Council’s Federal Budget submission and with the Government’s concerted lobbying effort at Electrify Parliament Day.
