Just prior to the end of this financial year (EOFY) is a great time to purchase a solar power system – particularly for small business owners in Australia.
EOFY brings with it a fair amount of hassle in the form of preparation to appease the tax man , but it also brings related opportunities.
For small businesses, it could mean a significant deduction in the form of solar power.
In May last year, then-Treasurer Joe Hockey announced a significant boost to the value of items that can be written off immediately instead of over several years – from $1,000 to $20,000.
“Small business can claim an immediate tax deduction for each and every item they purchase up to $20,000 … anything under $20,000 is immediately 100 per cent tax deductible from tonight,” said Mr. Hockey; who stated the incentive could potentially benefit 96 percent of Australian businesses.
The changes applied to assets acquired after 7.30pm on 12 May 2015 until 30 June 2017 and are on a per asset basis; so any number of assets each costing less than $20,000 could qualify.
Any business with an aggregated turnover less than $2 million may be eligible for accelerated depreciation.
Before small business owners rush out and acquire a solar power system, it’s important they consult with a tax professional to ensure installing solar would qualify for accelerated depreciation in their circumstances.
Solar panels can make a significant positive impact on a small business’s bottom line. For example, a 5.2kw solar panel array can provide a financial benefit of thousands of dollars a year; depending on installation location and energy consumption profile.
Solar is of particular benefit to many small businesses as the power is produced during business hours; reducing the need to draw electricity from the mains grid at peak daytime rates.
These days, $20,000 buys a very large solar power system; or a substantially-sized system with battery storage.
Another compelling reason for small business to buy a solar power system now rather than wait until next year is that a major subsidy for solar, the Solar Credits Scheme, will see a significant reduction in the not-too-distant future.
National solar provider Energy Matters is currently offering small businesses and households a triple bonus special on selected 3.12kW and larger solar power packages. The company is also offering special EOFY deals on its full range of systems; including solar + storage packages. Energy Matters’ friendly small business solar experts can be contacted on 133-SUN for advice on selecting a system.
Commercial solar power in Australia