Small Business Energy Incentive

Small business operators will be provided with a new tax incentive “to help propel their energy transformation”.

The Small Business Energy Incentive will provide businesses with annual turnover of less than $50 million with an additional 20% deduction on spending that supports electrification and more efficient use of energy.

It is intended to help small businesses make investments like electrifying their heating and cooling systems, upgrading to more efficient fridges and cooktops, and installing batteries and heat pumps.

Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business.

Eligible assets or upgrades will need to be first used or installed ready for use between the 1st of July 2023 and the 30th of June 2024