In response to businesses being negatively affected by the economic changes caused by COVID-19, as well the after-effects of the Australian bushfires, the Federal Government have released a $17.6 billion economic stimulus to support Australian businesses in this time of need.
One immediate change will be to increase the instant asset write-off; lifting the threshold to $150,000 (from $30,000) — and making more businesses eligible to use it.
The increase means businesses will be eligible to purchase equipment or investments such as solar power systems up to the cost of $150,000 and write them off as an instant tax deduction.
As stated in the Economic Response to the Coronavirus, only businesses that turnover less than $500 million will be eligible for this and the cut off date is 30th June 2020.
How solar power can reduce your overhead expenses
Reducing your businesses’ overhead costs is a smart move, whether you have or haven’t been negatively affected by the current economic fluctuations.
Today’s energy costs can be unpredictable and are typically on the incline, while solar power system costs are on the decrease.
By installing a solar power system, your business can;
- Reduce its electricity expenses
- Be protected against electricity price spikes
- Reduce carbon emissions
- Adopt sustainable energy practices
- Increase the value and desirability of your commercial property
Given that most businesses operate during the day, which is when a solar power system is functioning at its best, installing a solar power system is a valuable investment that can benefit a business for 20+ years.