Make the Most of the Federal Government’s Temporary Full Expensing Incentive with Solar
Blog | October 13th, 2022In response to the COVID-19 pandemic, the Australian Federal Government have extended the Temporary Full Expensing incentives until June 30th 2023.
Designed to support businesses and encourage investment, Temporary Full Expensing allows businesses with an aggregated turnover of less than $5 billion to immediately deduct the full cost of new, eligible depreciating assets of any value in the first year it is used or installed until, the end of this financial year (30th June 2023).
Where in the past a portion of the asset would have been tax deductable in the first year, with the remaining to be depreciated over future years, the Temporary Full Expensing initiative allows businesses to claim the full amount of an asset as a tax deduction up front.
For businesses looking for sustainable solutions to keep their operational costs down, Commercial Solar PV Systems and/or Solar Battery Storage make an ideal asset for these tax incentives.
While electricity costs are an ongoing expense your business will always need to account for, installing a commercial solar system represents a solution which can significantly reduce those costs from day one, and the savings it generates for your business will only increase as energy prices continue to rise.
Plus, you’re still able to claim the current renewable energy government incentives (STCs or LGCs), meaning your out-of-pocket cost could be considerably less than the write-off figure.
In addition to reduced energy costs, benefits of a commercial solar system include:
- Substantial return on investment
- Lowered ongoing business risk
- Reduced carbon emissions
- A competitive advantage
Considering the time it can take to receive grid approval and complete the installation to ensure the system to be installed and operational (not just purchased) before the cut-off date of 30th June 2023, now is the time to take advantage of this tax incentive to install solar.
To find out how much you could be saving with a Commercial Solar PV System and your anticipated ROI, get in contact with our team of Renewable Energy Experts today: https://www.solarenergyenterprises.com.au/contact-us/
*Please note, the information in this article is general in nature and not intended to be, nor does it constitute financial advice. For advice on your specific situation, Solar Energy Enterprises recommends you always speak to a qualified independent accountant, financial advisor or the Australian Tax Office.
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