Increase in Solar Incentive for Businesses

The Government recently announced an economic stimulus package to help Australian businesses withstand and recover from the economic impact of Covid-19.

One of the measures in the economic stimulus package is to increase the instant asset write-off threshold from $30,000 to $150,000, and expand access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30th June 2020.

This is a great opportunity for businesses considering installing solar power, as it allows you to instantly asset write-off solar systems that cost less than $150,000 purchased this financial year.

Another incentive in place until 30th June 2021 is for backing business investment. This time-limited 15-month investment incentive accelerates depreciation deductions, and is available to all businesses with aggregated turnover of below $500 million.

 

How will these incentives benefit your business?

With the instant asset write-off and other measures in place, it means that a majority of businesses may not need any cash on hand before they can commence solar system installations. This not only assists in cash flow, but also makes it possible for businesses to enjoy the benefits of solar power immediately.

In addition to that, the total amount of $150,000 would most likely allow your business to get a new, premium quality solar system with a capacity of 100kW, depending on the location, complexity of installation and other factors.

If you already have a solar system, you can use this opportunity to expand your system or purchase a solar battery to add to your existing system.

It is recommended that you check with your accountant or a tax professional to determine if you are eligible for these incentives.

Once that is confirmed, Total Solar Solutions is happy to provide you with a free quote for a high quality solar system that suits your business needs. Please contact our team at (03) 9729 0894 or email [email protected] for more information.