From the start of the 2012-13 tax year, small businesses in Australia will be able to immediately write off assets to the value of $6,500 – including solar power systems.
The tax reforms apply to businesses with a turnover of less than $2 million a year. The support recognises that for Australia’s 2.7 million small businesses, their tax burden is proportionately greater than for larger companies.
The tax break will make an even stronger case for businesses to slash their electricity bills by going solar; while building on their brand’s environmental sustainability efforts. In addition to substantial savings on operating expenses, very visible green initiatives such as solar energy can have a positive impact on consumer perceptions.
Electricity costs are increasingly impacting on the bottom line of small business – and will continue to do so. For example, in New South Wales; while households will be slugged up to $381 a year on average for electricity from July 1, small business customers will face even higher average annual bill hikes.
Installing solar power can more than just buffer against the pain. According to Energy Matters, a 3.185kW system installed in Sydney can generate savings of up to $1,098.00 annually.
Electricity bill savings for the same 3.185kW system installed elsewhere:
Brisbane: $1,740.00 annual savings
Canberra: $1,010.00
Melbourne: $1,256.00
Hobart: $947.00
Adelaide: $1,185.00
Perth: $1,177.00
Small businesses will also continue to be eligible for the Solar Credits scheme from July 1, a program that slashes thousands off the cost of a rooftop solar panel system. However, the rebate will be reduced by 50% from the start of the 2013/14 financial year. With the average small business owner having to contend with so many distractions in day-to-day operations; the year will fly by and Energy Matters recommends making a start on making the switch to solar panels sooner rather than later.
Energy Matters offers additional information on solar rebates and incentives for business on its web site and the company can be contacted on 133 SUN.
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