Home / News / Energy incentive to transform small business

Energy incentive to transform small business

03 May 2023

The 2023-24 Federal Budget will allocate $314 million towards a new energy program aimed at lowering business power bills and emissions.

The Small Business Energy Incentive will offer small and medium enterprises a new tax measure to help with their energy transition.

The bonus tax deduction will provide businesses with annual turnover of less than $50 million an additional 20 per cent deduction on spending that supports electrification and efficient energy use.

Modifications can include electrifying 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.

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

This new incentive will help address costs, support growth and improve the resilience of Australia’s small businesses.

Federal Minister for Small Business Julie Collins

This article was originally published by The Victorian Chamber of Commerce

Grants and funding Sustainability

In other news...