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The Small Business Energy Incentive: How You Can Capitalise on Energy Efficiency

Australian business owners or managers may be eligible to take part in the Australian government's Small Business Energy Incentive. That’s right - it’s now easier than ever for small businesses to improve their energy efficiency and capitalise on the benefits of being powered by renewable energy sources.

The Australian government is encouraging small businesses to decrease their energy use and manage energy cost volatility in the long run. This effort will significantly contribute to Australia's ambitious goal of achieving a 43% reduction in 2005 emission levels by 2030.

What is the Small Business Energy Incentive?

The Small Business Energy Incentive, which went into effect as of April 30, 2023, is designed to help entice businesses to lower their energy costs and do their part to help Australia reach its 2030 emission reduction target.

Qualified businesses will be entitled to an additional 20% tax deduction on expenditures that support electrification and more efficient energy use when they make the switch to products like batteries, heat pumps, and efficient appliances..

How do I know if I’m eligible for the Small Business Energy Incentive?

In order to be one of the 3.8 million small to medium-sized businesses eligible for this incentive, your business must have an annual turnover of less than $50 million.

How to Apply for the Small Business Energy Incentive

The process of applying can be broken down into 5 steps:

  1. Check that your business has an annual turnover of less than $50 million.
  2. Invest in purchasing energy-efficient options such as batteries, heat pumps, and efficient appliances.
  3. Keep records of your energy-efficient investments to claim the incentive when you lodge your tax return.
  4. Claim the Small Business Energy Incentive when you lodge your tax return.

For more information, check out the Australian Tax Office webpage.

With effective energy management, even small businesses can contribute to Australia's net zero target. Our energy brokers can guide you through the process of energy procurement from renewable sources, making your journey towards energy efficiency smooth and rewarding.

For more information about energy management and how your business can take advantage of the Small Business Energy Incentive, visit our website. We provide professional advice on how to effectively reduce your energy costs and contribute to a more sustainable Australia.

Ready for change? Contact us.


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