Energy opportunities for businesses in the FY21/22 budget
The FY21/22 Federal Budget announced in May 2021 includes a number of measures specifically designed to support businesses with managing energy and carbon.
In particular, the Australian Government is extending temporary full expensing, which businesses can leverage for energy management upgrades. This tax incentive can help improve the business case for businesses to invest in energy productivity, including energy efficient equipment.
The extension of temporary full expensing to 30 June 2023 means that businesses with a turnover of up to $5 billion will be able to:
Immediately deduct the full cost of a new, eligible asset installed or ready for use between 6 October 2020 and 30 June 2023, with no limit on asset value; and
Immediately deduct the full cost of improvements made to existing depreciable assets by 30 June 2023.
Further, businesses with a turnover up to $50 million will be able to immediately deduct the cost of all second-hand assets installed or ready for use by 30 June 2023.
These measures expand the measures announced in the FY20/21 Federal Budget to the end of FY22/23.
For up-to-date information regarding thresholds and other information on tax incentives visit ato.gov.au
Click here to return to the tax incentives 101 page.
Click here to learn more about energy management policies and programs announced in the FY21/22 Federal Budget.