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Small businesses with an aggregated annual turnover less than $50 million have access to a 20% tax reduction on new assets or improvements to existing assets that support more efficient energy use.
Eligible assets must have been both first used and installed between 1 July 2023 and 30 June 2024. If you are claiming improvement of the asset, the improvements must have occurred during this period as well.
Up to $100,000 of the total amount spent is eligible under the incentive, which means the bonus deduction can be up to $20,000.
To claim, make sure you have accurate records reflecting the cost of the asset or improvement. You should also be able to show that you compared different assets when upgrading or improving.
Assets that are not eligible include:
* Assets that can use fossil fuel
* Assets that exist solely to generate electricity (eg. solar panels)
* Capital works
* Motor vehicles
* Software development tools
* Financing costs
#accountant #tax #business
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