Businesses with an aggregated annual turnover of less than $50 million that had upgraded or purchased a new asset that helps improve energy efficiency during the 2024 income year should consider the small business energy incentive. 
This new measure gives them the opportunity to claim a bonus deduction equal to 20% of the cost of eligible assets or improvements to existing assets that support more efficient use of energy.
This incentive applies to eligible assets that were first used or installed ready for use for a taxable purpose between 1 July 2023 and 30 June 2024.
Eligible improvement costs must have been incurred during this period to be eligible for the bonus deduction.
Up to $100,000 of total expenditure is eligible under this incentive, with the maximum bonus deduction being $20,000 per business.
This 20% bonus deduction is on top of other existing ones. Businesses can claim both the ordinary deduction for the expense as well as the bonus deduction.
Click here for more details from the ATO on how this incentive works. Small business energy incentive
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Editor: Please make sure to let us know if you made any purchases that may be eligible for this bonus.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
