New energy tax deduction incentive
On 30 April 2023, the Australian government announced it will provide businesses with an annual turnover of less than $50 million with an additional 20% deduction on spending that supports electrification and more efficient use of energy. Eligible assets or upgrades must be first used or installed and ready for use between 1 July 2023 and 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 per business. The measure will help small enterprises to make investments like electrifying their heating and cooling systems and upgrading to more efficient fridges and induction cooktops installing batteries and heat pumps. Excludes expenditure on electric vehicles, renewable electricity generation assets, capital works, and assets that are not connected to the electricity grid.
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