The government is consulting on exposure draft legislation to introduce the Small Business Energy Incentive to help small and medium businesses electrify and save on their energy bills.
Businesses with aggregated annual turnover of less than $50 million will have access to a bonus 20 per cent tax deduction for the cost of eligible depreciating assets that support electrification and more efficient use of energy.
The Small Business Energy Incentive will apply from 1 July 2023 until 30 June 2024. Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000.
The government is seeking stakeholders’ views on the exposure draft legislation and accompanying explanatory materials implementing this measure.