The Australian Taxation Office (ATO) has declared small business energy incentive with an additional 20% deduction on eligible expenditures aimed at promoting electrification and enhancing energy efficiency.
Eligible assets or upgrades will need to be first used or installed ready for use between 1Â July 2023 and 30Â June 2024. This measure is not yet law.
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.
Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business.
