The Australian Federal Budget 2023: Energy Saving Opportunities for Businesses
In unveiling the Australian Federal Budget 2023-24, the government has spruiked the energy transition as "Australia's biggest opportunity for growth and prosperity". In this article, we highlight the key initiatives in the Federal Budget 2023-24 allocated to propel the adoption of renewable energy within the commercial sector.
To reduce greenhouse gas emissions, promote clean energy and drive economic growth, these initiatives mark a turning point in Australia's commitment to a greener and more resilient future. These investments will create job opportunities, stimulate economic growth and ensure a reliable and affordable energy supply for the commercial sector. In the table below, we highlight the key budget initiatives shaping the commercial sector's renewable energy landscape.
Australian Federal Budget 2023-24: Energy Initiatives and Opportunities for Commercial Businesses
| Scheme | What is it? | Who's it for? | Equipment covered? |
|---|---|---|---|
| Small Business Energy Incentive | A tax break allowing SMEs to deduct an additional 20% of the cost of eligible depreciating assets that support electrification and energy efficiency. | Small businesses with annual turnover under $50 million. | Upgrades to LED lighting, energy-efficient HVAC systems and refrigeration plus solar PV systems and batteries. |
| The 'new' Instant Asset Write-Off (IAWO) | For smaller projects under $20k, businesses will be able to write off the cost of the equipment in the year they buy and start using it. | Small businesses with an annual turnover of less than $10m. | Lower value projects like smaller solar installs, upgrades, battery storage, HVAC equipment and EV charging infrastructure. |
| Emissions Reduction Fund (ERF) | Gives businesses the chance to create a new revenue stream when they adopt commercial solar and storage. | Businesses, organisations and individuals who register themselves on the ERF website. | Projects that help to reduce emissions. |
| National Skills Agreement | Financial support for apprentices and employers including $10k living allowance and wage subsidies. | Businesses in critical industries in including clean energy. | NA |
| Energy Bill Relief Fund | The Energy Bill Relief Fund provides a one-time payment to help with energy bills. | Households and eligible small businesses on a separately metered business tariff. | Grid-generated electricity. |
Source: Energy Ease
The 2023-24 Australian Federal Budget initiatives for renewable energy in Australia's commercial sector highlight the government's commitment to sustainable development and a clean energy future. By increasing investments in renewable energy infrastructure, offering incentives and grants, and fostering collaborations, the government aims to create a thriving ecosystem that encourages businesses to adopt clean energy solutions, reduces greenhouse gas emissions, and stimulates economic growth. As Australia moves forward with these ambitious initiatives, it is expected to see a significant boost in renewable energy adoption, accelerating renewable energy technology commercialisation and enhancing workforce skills in the renewable energy sector.
Quality Energy is a leading renewable energy solutions provider at the forefront of this exciting transformation. Our team of energy experts are ready to assist your business in harnessing the benefits of clean energy. Tap into the Federal government's incentives and grants to accelerate your transition to renewable energy and gain a competitive edge in the market.
Quality Energy takes a holistic approach to energy efficiency, and we understand that every site and industry has different energy requirements. Contact us today to enquire about our range of renewable energy solutions, such as solar power systems for commercial, solar car parks, hybrid solar inverters, solar batteries, and EV chargers. Embark on your journey to a clean energy future and start saving on electricity bills.
Disclaimer: The information published in this article is accurate as of the time of publication. This article contains third-party link that may direct you to third-party websites that are not affiliated with us. We are not responsible for examining or evaluating the content or accuracy, and we do not warrant and will not have any liability or responsibility for any third-party materials or websites or for any other materials, products, or services of third parties. Full terms and conditions of our website.
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