Come the end of each financial year, there is always the stress of sorting through receipts for what items can and can not be claimed for your company’s taxes.
The advent of the Renewable Energy Target in 2001, previously known as the Mandatory Renewable Energy Target, provides financial and tax incentives for business that install solar panels, along with other alternative energy sources.
Small businesses in particular can benefit from the budget 2015 tax rebates, that kicked in from May 12, 2015, allowing for an immediate claim for assets that cost less than $20,000. This includes solar systems and solar hot water.
Previously, this tax deduction would have to be taken over the course of 2-3 years. Additionally the top limit for immediate claims was topped off at $1,000.00.
The government wants to encourage the near 96% of Australian business that could benefit from this $5.5 billion package, to “have a go”.
Even though investing in a solar system can help a business significantly reduce their electricity bills, by around 25%, along with the added benefit of reducing their carbon footprint, this tax break is an opportunity for many business to increase efficiency, lower outgoing costs while increasing their competitive edge in the marketplace.
These tax deductions, as they currently rate, will cease on June 30, 2017.