The new $17.6 billion Coronavirus stimulus package announced on March 12 lifts the threshold for instant asset write-offs, which may include solar and battery installations, to $150,000 (from $30,000) until June 2020. The measure is designed to support business investment and keep the economy moving during the severe downturn caused by the spread of COVID-19.
Claim entire cost of installation instantly
The policy allows businesses to claim the entire cost of a solar and/or battery installation instantly rather than depreciating it over a number of years. This is great news for businesses who may already have been considering investing in an energy asset but needed a little extra nudge. The offer is available to businesses with an aggregated annual turnover of less than $500 million and can be applied to multiple assets before June 2020.
An instant write-off can reduce the payback period for an asset by handing you back your tax dollars earlier. Due to the timing of the scheme, you could be claiming the whole tax deduction in just a couple of months.
Solar and battery installations can lower operating costs
The Australian energy landscape has been notoriously volatile and many businesses are all too familiar with the sting of high electricity costs. With an aging thermal generation fleet and a political landscape littered with the remains of abandoned energy policies, Australia’s future energy supply is very uncertain.
Investing in onsite electricity generation and/or storage can go a long way to future-proofing your business by reducing your exposure to volatile electricity markets. If your site is not suitable for solar you can still benefit from battery ‘arbitrage’ whereby a battery is charged when electricity prices are low and discharged when the prices are high. Both of these asset types can lower your operating costs over time and build resilience into your business.
Not sure how to make the best of this opportunity? We can help you develop a business case for a solar or battery asset and take you right through to the installation. You only have until June 30, 2020 so get in contact with one of our Energy Experts now.