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Small business energy incentive

The energy incentive for small businesses in the 2023-24 Budget.

Last updated 30 June 2024

On 30 April 2023, the Australian Government announced it will provide businesses with an annual turnover of less than $50 million with an additional 20% deduction on spending that supports electrification and more efficient use of energy. This measure is now law.

The energy incentive applies to eligible expenditure on assets between 1 July 2023 and 30 June 2024 ('the bonus period'). It also applies to eligible expenditure on improvements to existing assets incurred during the bonus period.

The energy incentive helps small businesses make investments like:

  • electrifying their heating and cooling systems
  • upgrading to more efficient fridges and induction cooktops
  • installing batteries and heat pumps.

Up to $100,000 of total expenditure is eligible for the energy incentive, with the maximum bonus tax deduction being $20,000 per business.

More information

- Small Business Energy Incentive

- Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023External Link