The Energy Efficiency Council has welcomed the announcement by the Albanese Government of a tax incentive to help small businesses drive down their energy costs, by providing an additional deduction on investments in energy efficiency and electrification.
Under the scheme, businesses with a turnover of less than $50 million will be able to claim a bonus tax deduction of 20 per cent on expenditures of up to $100,000 made in the 2023-24 financial year.
EEC CEO Luke Menzel said the initiative was timely and would give businesses relief from high energy prices. “We know that rapid increases in energy prices have hit small businesses hard. Making it easier for them to invest in energy efficiency and electrification helps them take control of their energy costs in the short term and will boost their competitiveness for years to come.”
Mr Menzel noted the importance of controlling energy expenditure for combatting inflation. “Helping businesses cut their bills with energy efficiency helps put the inflation genie back in the bottle.”
“Driving down energy bills through improved energy performance means one less cost that has to be passed on to consumers – it’s a win-win,” he said.
The Government anticipates that around 3.8 million businesses could be eligible, with the measure costing around $314 million. The deduction could unlock around $1.5 billion in investment to improve Australia’s energy performance.