With the economy suffering huge hits from coronavirus (COVID-19) and the recent bushfire disaster across Australia, the times are tough for businesses. To combat relative challenges, the Federal Government has announced an economic stimulus worth $17.6 billion.
The stimulus includes a range of tax deduction incentives that will also make commercial solar power more accessible. This comes alongside other investments all designed to bring much needed relief to businesses struggling with the impacts.
Benefits will be delivered to companies looking to improve their tax deductions for renewable energy solutions, like solar power systems. The best part is that these arrays can be of any size or format.
Whether they carry a limited number of kilowatts for small business across a smaller roof space, or a larger system with thousands of panels (think warehouses or factories), all will fall under this incentive.
Even large-scale solar farms will be supported.
The biggest benefit comes to systems worth more than $150,000 or less, of which need to have been purchased this financial year. However, there’s still an incentive for all commercial PV systems that have been implemented across the board, until 30th June 2021.
All parts of this stimulus will be actioned immediately.
Key incentives for installers
If you’re a solar installer, you can expect a number of advantages as a result:
- Instant write-off increased from $30,000 to $150,000 (for companies sitting under $500 million turnover)
- 50 percent bonus depression in the first year
- 50 percent of BAS statement paid direct to your business account
- 50 per cent of the salary of apprentices paid directly to your bank account.
Low-interest rates mean accessibility for customers
When assessing the stimulus package in terms of selling solar power, there is an important bottom line to take away from it.
Because of the package overall, the write-off itself, the bonus tax write-off, GST rebate and electricity savings, a majority of businesses won’t need any cash on hand to commence installations.
Overall, the provided $150,000 is more than enough to pay off a solar capacity of 100kW (depending on the complexity of the installation and location of it).
Word of warning to consumers
This is a tough time for all industries – renewables included. We highly recommend that you do your research before opting for any supplier of panels. Some won’t be up to the job of current demands (and restrictions), but it’s worth taking advantage of this current tax incentive.
Our experts can help you find the right solution, without risks. If you’d like to find out how you can take advantage of this current benefit and forthcoming stimulus package, we encourage you to get your three FREE quotes from Energy Matters now.