Victoria
New South Wales
South Australia
QueenslandWhat is it?
In 2020 the federal government introduced an SME investment stimulus program that included a significant raise to the ceiling of the instant asset write off, from $30,000 up to $150,000. Under the program, businesses with a turnover of less than $500 million can write-off the purchase of new assets up to the value of $150,000, reducing that year’s taxable income. These assets must be purchased after 30 June 2020 – but ready to use by 30 June 2023.
Maximise Your ROI
Energy efficiency and energy generation projects can often be financially rewarding after a short payback period, or immediately from the outset. With the additional incentive of up to $150,000 instant write-off, projects such as rooftop solar, energy-efficient lighting, or a heating and cooling upgrade can reduce your overheads for years to come, take you towards your sustainability goals, and reduce your taxable income.
Currently the instant asset write off is set to conclude on 30 June 2023, so the clock is ticking to get your project underway, installed and operational by the deadline.
Eligibility Requirements
- Must hold an active ABN
- $150,000 purchase limit
- Turnover under $500,000,000
- Assets must be acquired after 30 June 2020
- Assets must be operational by 30 June 2023
Real Savings
For example, a commercial rooftop solar setup generating 100kW of electricity, plus a small 3-phase battery, could cost around $147,000. As a rough guide, the expected generation would have a standard ROI pay-back of 4-6 years. With the instant asset write-off this would produce a return in year one, with the additional benefit of the 4-6 years and ongoing.
Act Now
If you’ve been considering an energy efficiency or energy generation project, take the first step by contacting us today to meet the 30 June deadline.
Note: The information provided is a general guide only and is not financial or taxation advice.
