Rewiring Australia has commended the federal government’s move to increase tax deductions for energy-efficient small businesses.
In a press release on Sunday, the industry representative said the tax incentives would allow enterprises to adopt electrification further, replacing gas power and improving the efficiency of electrically powered equipment.
Under the tax incentive program, businesses with a turnover of up to $50 million will be able to redeem a bonus 20-per cent deduction on batteries and other electrical devices when they invest up to $100,000 to replace fossil fuel energy and technology.
Each business can receive a maximum reduction of $20,000. The measure is expected to cost $314 million over the forward estimates.
Dr Saul Griffith, co-founder and chief scientist at Rewiring Australia, said the announcement would accelerate electrification among Australia’s 3.8 million small and medium businesses and secure years of benefit for those who seized the opportunity.
“The federal government promised a ‘meaningful and substantial’ package of electrification measures in the federal budget and this announcement is the first part,” Griffith said.
“Many small businesses who are reliant on fossil fuel energy have suffered serious bill shock this year as commodities such as gas have spiked. But when you assist small businesses to swap out polluting energy sources and machines for renewable-powered electric versions you permanently lower the cost base of a business,” the chief scientist said.
Griffith also highlighted the impact of electrification in ushering in a new era of abundance and stability for Australian businesses.
Recent research from Rewiring Australia found that tens of billions of dollars go to waste every year on expensive and inefficient fossil fuels.
“Electrification is the climate policy that immediately delivers for the economy. We look forward to working closely with the Government to assist with implementation of this package,” Griffith said.
