02 8824 4363


Energise your business

Posted by Team AVS on 11 Jul, 2024  0 Comments

Businesses (with an aggregated annual turnover less than $50 million) will have access to a bonus 20% tax deduction with the small business energy incentive (“the incentive”). This applies to new assets, or improvements to existing assets, that support more efficient energy use.

Eligible assets must be both first used or installed ready for use for any purpose, and used or installed ready for use for a taxable purpose, between 1 July 2023 and 30 June 2024. Eligible improvement costs must also be incurred during this period to be eligible for the bonus deduction.

Up to $100,000 of total expenditure is eligible under the incentive. The maximum bonus deduction is $20,000 per business.

What you can’t include or claim 

While this incentive covers a broad range of expenditure, it’s important to know what you can’t claim:

  • assets and expenditure on assets that can use a fossil fuel
  • assets and expenditure on assets that have the sole or predominant purpose of generating electricity (such as solar panels)
  • capital works
  • motor vehicles and expenditure on motor vehicles
  • expenditure allocated to software development pools
  • financing costs.

What you need to do 

When claiming the incentive, make sure you:

  • have accurate records that provide evidence of the expenditure you claim
  • can show and explain how you compared different assets when upgrading or making improvements
  • keep up to date with information on our website on what, when and how to claim
  • seek advice from your registered tax professional if you have one.

If you have any questions, feel free to ask them in the comment section. We will be happy to answer all your queries.


Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer : All the content (including Blogs, newsletters, Fact sheets, calculators etc.) provided on this website is general information only and is neither intended to nor be considered personal financial or taxation advice. The content has been prepared without taking into account your personal circumstances, financial situation or objectives. In making any financial, investment or taxation decision, information provided on this website should not be relied upon and you should seek personal advice. AVS Business Services Pty Ltd disclaims any responsibility for any decision that you make, based on the information provided on this website.All the information provided on this website is prepared in good faith and based on AVS’s knowledge and understanding of superannuation, taxation and other relevant laws and is believed to be correct at the time of writing the information. However as the laws, being dynamic by nature, keeps on changing, you should not rely on the information provided on this website without first obtaining advice from qualified professional.