As the commercial landscape is constantly changing, it’s essential for businesses to remain up-to-date with the latest policy developments that may impact their financial strategies.

On 30 June 2023, temporary full expensing ended. Consequently, the Small Business Energy Incentive was introduced and the Instant Asset Write-Off was temporarily extended at a lower level.  

In this article, BMT Tax Depreciation offers insights into their implications for businesses.  

Introduction of the Small Business Energy Incentive

The Australian Government has introduced the Small Business Energy Incentive as part of the 2023 Federal Budget. This incentive aims to assist small- and medium-sized businesses in implementing energy-saving measures and adopting renewable energy technologies. Under this incentive, eligible businesses can access financial incentives, grants, and support to invest in energy-efficient equipment, conduct energy audits, and upgrade their infrastructure to reduce energy consumption and environmental impact. 

From 1 July 2023, businesses with an aggregated turnover of less than $50 million, can deduct an additional twenty per cent of the cost of eligible depreciating assets that support electrification and more efficient use of energy.

The Small Business Energy Incentive not only helps businesses save on energy costs but also contributes to a greener and more sustainable future.

Temporary extension of the Instant Asset Write-Off

Recognising the positive impact of the Instant Asset Write-Off Incentive, the Australian Government has extended its availability, providing further support to businesses. 

Small businesses with an aggregated turnover of less than $10 million can immediately deduct the full cost of qualifying assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2024. This is on a per-asset basis, meaning multiple assets can be written off as long as they qualify.

The extension of the Instant Asset Write-Off Incentive provides businesses with continued incentives for investment, enabling them to upgrade equipment, expand operations, and enhance productivity while reducing potential tax liabilities.

While the introduction of the Small Business Energy Incentive offers opportunities for businesses to embrace energyefficiency and sustainability, the extension of the Instant Asset Write-Off continues to support investment and growth. 

By staying informed and taking advantage of available incentives and initiatives, businesses can navigate these changes effectively, optimise their financial outcomes, and position themselves for long-term success in a dynamic business environment.

Maximise deductions with a depreciation schedule  

Businesses wanting to maximise deductions need to engage a quantity surveyor to prepare a tax depreciation schedule.  

BMT Tax Depreciation applies government incentives where applicable to help businesses improve their cash flow, reduce potential tax liabilities and optimise their overall financial outcome.

To discuss how government accelerated depreciation incentives can benefit your business call BMT 1300 728 726 or Request a Quote.

The information in this article is general in nature and shouldn’t be taken as a quote or a guaranteed outcome.  

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