How Your Business Can Take Advantage of Government Stimulus Packages by Investing in Commercial Solar Now
If you’re a business owner with an annual turnover of less than $500 million there’s some great news from the Australian Government.
Because we are now officially in a recession the Australian Government is offering several time limited incentives to support business investment and economic growth.
These one-off measures are designed to support you with investments you have already planned, as well as encouraging you to bring investment forward to support economic growth over the near term.
Instant Asset Write-off
One of the time-limited stimuluses is the instant asset write-off which the government has increased from $30,00 to $150,000, as well as extending it for six months to 31 December 2020.
One of the great things about the instant asset write-off is that any business with an annual turnover of less than $500 million can write-off up to $150,000 as a tax deduction as long as the money is spent before 31 December 2020.
You can decide to use this write-off for any assets you purchase for your company, but deciding to invest in a technology like commercial solar and battery storage really makes smart business sense because it will reduce your overheads both now and into the future, ensuring you get the very best return on your investment.
Backing Business Investment
In addition to the instant asset write-off and the reduction in your business overheads both in the short and the long term, there are even more limited time financial benefits available to you if you decide to invest in a commercial solar system this financial year.
The Backing Business Investment is another part of the government’s stimulus package that rewards you for investment in infrastructure. For example, if you decide to invest in commercial solar before June 30 2021, the government will let you deduct 50% of your investment from your tax return and apply normal depreciation to the other 50%.
If your business is large enough to build a solar farm or install more than 100 kilowatts of panels on your commercial property the Backing Business Investment scheme will reward you by letting you claim 50% of your investment and also depreciate the remaining 50%.
Small Scale Technology Certificates and Large Scale Generation Certificates
Depending on the size of the commercial solar power system you invest in you may also be entitled to claim either Small Scale Technology Certificates (SCTs) or Large Scale Generation Certificates (LGCs).
The Federal government issues these certificates as a financial incentive for businesses to install eligible small-scale renewable energy systems such as solar panel systems.
These certificates can then be sold to recoup a portion of your cost of purchasing and installing the commercial solar system, effectively lowering the cost of your solar power even further.
Take advantage of these government stimulus packages before they end
With the Australian Governments instant asset write-off ending December 2020 and the Backing Business Investment ending June 2021, there’s never been a better time to invest in commercial solar.
At Progress Electrical we have many years experience and knowledge in delivering high efficiency solar systems for all types of commercial applications, helping local businesses just like yours to drive down their energy costs and achieve the very best return on their investment.
Let our industry experience help guide you to the best solar system for your commercial property.
Contact us today to discuss your needs and discover how your business can best take advantage of these time-limited stimulus packages.