The federal government has just released the federal budget for 2023-24 to help Australia move towards becoming a clean energy superpower. With talks about hydrogen and infrastructure projects it’s difficult to understand how this will trickle down to impact our industry, installers and home owners.
Our team have unpacked the budget to uncover 5 areas that directly impact our solar installers. Please keep in mind we have had to interpret some of this information but have provided sources if you would like to research further.
Small businesses receive $650 in energy bill relief
High electricity bills are what keep the phones ringing for solar businesses, so the introduction of an Energy Relief Plan is a bit counterintuitive to driving solar sales. The upside is that an expected 1 million small businesses will also receive bill relief of $650. Each state determines the relief for homeowners; (QLD, NSW, VIC $500), (WA $350), (TAS – $250), (ACT – $175).
More commercial projects in FY 2024/25
From July 1st – 20 per cent deduction on spending that supports electrification of small businesses and more efficient use of energy which includes batteries, heating and cooling systems and more efficient fridges and induction cooktops through the Small Business Energy Incentive.
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 instant asset write-off of $20,000 has been extended for 2024
Offering cash flow support to businesses. This enables immediate tax deductions for assets purchased for business use, which includes solar equipment. More details here.
Increase in lending options for homeowners
The industry will continue to see an increase in consumer financing for solar through companies like Bryte and Plenti with the $1.3 billion investment in the Household Energy Upgrades Fund . The fund is setup to increase financing options for household energy upgrades such as solar. This level of funding should attract more lenders to the market and increased competition resulting in better rates and options for the customer.
GST and Income tax payment relief
Businesses will receive cash flow relief through reduced tax instalments for GST and income tax in 2023-24.
The increase in quarterly tax instalments will be halved to 6% instead of 12%, reflecting the current economic conditions faced by the sector.The federal budget for 2023-24 is a significant step towards Australia’s clean energy transformation. As an Australian-owned and operated company, AC Solar Warehouse is proud to be apart of it.