It’s important to keep up to date with all the tax concessions and make the most of them. Small businesses (with aggregated turnover of less than $10 million) are able to immediately deduct the full cost of eligible assets costing less than $20,000. The instant asset write-off can be used for multiple assets, as long as the cost of each individual asset is less than the $20,000 threshold. The measure will apply to eligible assets that are first used or installed ready for use between 1 July 2023 and 30 June 2024.

Small businesses (with annual turnover of less than $50 million) to deduct an additional 20% on spending that supports electrification and more efficient use of energy, such as electrifying heating and cooling systems, upgrading to more efficient fridges and induction cooktops, and installing batteries and heat pumps. Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business. The incentive will apply to eligible assets or upgrades that are first used or installed ready for use between 1 July 2023 and 30 June 2024.

If your business meets the eligibility tests, you may be able to claim asset purchases or the cost of upgrades in your tax return for 2024. This is provided the assets or upgrades are first used or installed and ready for use between 1 July 2023 and 30 June 2024.

There may be time to make purchases for your business and claim the eligible amount against the income you earn in the income year ending 30 June 2024. Not every purchase or expenditure may qualify, and the rules are complex, so you’ll need to seek your own independent taxation advice before buying the asset or paying for any energy efficient upgrades.