Small Business Energy Incentive – Bonus Tax Deduction

Your business may be able to receive a bonus 20% tax deduction for certain types of expenditure that support electrification and more efficient use of energy. To be eligible, you must have purchased and eligible asset or made an eligible upgrade of an asset in the period 1 July 2023 to 30 June 2024.

Here are some examples:

A more energy efficient machine to replace another machine.
An asset that uses electricity to replace an asset that uses fossil fuels.
Purchase of an electricity storage device.
Purchase of a device that helps you monitor your electricity consumption more efficiently.
Purchase of an asset that uses electricity and is more energy efficient than another reasonably comparable asset available on the market.

This type of expenditure is NOT eligible:

Assets that mainly use fossil fuel.
Motor vehicles.
Assets that have the dominant purpose of generating electricity (e.g. solar panels).
Capital works (e.g. building costs).
Financing costs of acquiring news assets (interest).

There is cap on the amount of eligible expenditure - $100,000. This means that the maximum bonus tax deduction that can be claimed is $20,000.

Please consider the assets you have purchased in the last financial year and improvements to assets that may be eligible for the bonus deduction and advise us of any such assets. The information that you give us to complete your business tax return may not have enough detail for us to identify eligible expenditure. So, to help us maximise your claim, please let us know what assets you think may permit the claiming of the bonus deduction.