Tax deduction on expenditure to improve energy efficiency

A federal incentive that provides a bonus 20% tax deduction for the cost of eligible assets and improvements that support more efficient use of energy for small businesses.

The incentive applies to eligible expenditure on assets and improvements incurred during the bonus period 2023-07-01 to 2024-06-30, up to $100,000 of total expenditure (maximum bonus deduction $20,000).

Businesses with an aggregated annual turnover of less than $50 million are eligible.

The incentive provides a bonus 20% tax deduction for the cost of eligible assets and improvements that support more efficient use of energy.

The incentive applies to eligible expenditure on assets and improvements incurred during the bonus period from 1 July 2023 to 30 June 2024.

Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000.

The bonus deduction is separate and additional to other deductions ordinarily claimable under taxation law.