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Boosting Small Business Energy Efficiency Through Accelerated Depreciation


In the 2018 Budget, the Federal Government announced a further extension to the $20,000 small business instant asset write-off initiative. This initiative allows businesses with an annual turnover of up to $10 million to immediately deduct for the cost of each business asset up to $20,000, improving cash flow and helping them to reinvest in their business and replace or upgrade their assets.

The Energy Efficiency Council, with the support from the City of Sydney, has produced a set of materials to help small business owners, energy efficiency service providers and small business advisers make use of this initiative.

Many energy efficiency projects in small businesses typically require less than $20,000 or less than $20,000 per asset. For example, it could include a $15,000 lighting upgrade, a $10,000 controls upgrade and a $10,000 investment in insulation. Similarly, an investment of $20,000 in renewable energy could buy a 15 kW solar power system or a 3 – 5 kW wind turbine (costs net of renewable energy certificates).

The materials will help small business owners make use of the Federal Government small business instant asset write-off initiative to boost their energy efficiency. It will develop new tools and materials and get them into the hands and minds of business owners, energy efficiency service providers and small business advisers.

Download a copy of the materials here.

In addition to the materials, the Energy Efficiency Council is offering free webinars for organisations who want to learn out more about how the initiative could work in their businesses. To register your interest, click here.

Further information is available from the Australian Tax Office. If in doubt speak with your trusted financial adviser before making your purchase to ensure both you and your small business will benefit.

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