Federal Budget Archives | Smart Ease https://www.smartease.com.au/tag/federal-budget/ Smarter payment solutions for smarter business Wed, 22 May 2024 06:01:05 +0000 en-US hourly 1 https://www.smartease.com.au/wp-content/uploads/2022/04/cropped-SMART-EASE-LOGOMARK-CIRCLE-COL-32x32.png Federal Budget Archives | Smart Ease https://www.smartease.com.au/tag/federal-budget/ 32 32 What’s in the Federal Budget for solar businesses? https://www.smartease.com.au/federal-budget-for-solar/ Sun, 14 May 2023 23:52:38 +0000 https://www.smartease.com.au/?p=9118 The 2023 Australian Federal Budget brings good news for commercial solar installers, with new tax breaks and hiring incentives.

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The 2023 Australian Federal Budget brings good news for commercial solar installers, as new tax breaks have been introduced to encourage businesses to invest in solar and energy-efficiency projects.

The 9 May announcements were welcomed by the Smart Energy Council, which has described the Budget as a “significant step in responding to climate change and positioning Australia as a renewables superpower”.

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Contents

Small Business Energy Incentive

The Small Business Energy Incentive is designed to promote energy efficiency among small businesses. It allows eligible SMEs to deduct an additional 20% of the cost of eligible depreciating assets that support electrification and energy efficiency in their tax return.

  • Who’s it for? Small businesses with annual turnover under $50 million qualify.
  • How does it work? Complimentary energy assessments are on offer to identify cost-saving opportunities. Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business.
  • What equipment does it cover? Upgrades and purchases of LED lighting, energy-efficient HVAC systems and refrigeration plus solar PV systems and batteries.
  • How to apply? Businesses can apply through registered service providers who assess eligibility, conduct energy assessments, assist with equipment selection, and help with claiming the incentive.

How will this benefit your commercial solar business?

This tax break makes adopting solar and other energy-efficiency and decarbonisation equipment a lot more affordable for businesses. When combined with a Smart Ease payment solution, it allows businesses to install a commercial solar system without spending a cent upfront – and enjoy a tax incentive at the same time.

It’s a no brainer!

There’s also the opportunity to become a registered service provider – stay tuned for more information on this.

The ‘New’ Instant Asset Write-Off (IAWO)

The Instant Asset Write-Off in its current form ends on 30 June 2023, but a scaled-back version has been announced from 1 July. Here are the new rules:

  • Who’s it for? Small businesses with an annual turnover of less than $10m.
  • What’s on offer? Businesses can deduct the entire cost of eligible assets that are purchased and first used between 1st July 2023 and 30th June 2024.
  • What equipment does it apply to? Business equipment costing less than $20,000. The threshold applies to each asset so businesses can buy multiple assets under this provision. Equipment costing more than $20,000 cannot be immediately deducted but can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year after that.

How will this benefit your commercial solar business?

For smaller projects under $20,000 value, customers will be able to write off the cost of the equipment in the year they buy and start using it. This allows businesses to reduce their tax liability immediately, which provides a cash flow advantage.

The $20,000 limit means the revised IAWO will suit lower value projects like smaller solar installs, upgrades, battery storage, HVAC equipment and EV charging infrastructure.

Emissions Reduction Fund (ERF)

The ERF is not new – it launched in 2014 – but it received a fresh funding injection in the 2023 Budget.

It works like this:

  1. Businesses, organisations and individuals register themselves on the ERF website.
  2. They submit projects that help to reduce emissions to the ERF (must be done before the project starts).
  3. The Government purchases the resulting emissions reductions as Australian Carbon Credit Units (ACCUs).
  4. These ACCUs can be traded, sold, or used to meet compliance obligations.

How will this benefit your commercial solar business?

The ERF gives businesses the chance to create a new revenue stream when they adopt commercial solar and storage. If this is something your customers are able to manage, it can be a bonus to the energy bill savings generated by switching to solar.

federal budget for solar

Hiring and training staff

A new five-year National Skills Agreement, which will launch in January 2024, was announced in the Budget. It includes:

  • Financial support for apprentices and employers, including a $10,000 living allowance for eligible apprentices.
  • An additional 300,000 fee-free TAFE and vocational education training places for apprentices in critical industries including clean energy.
  • Continuation of the New Energy Apprenticeship scheme, which includes Priority Wage Subsidy for eligible employers.

How will this benefit your commercial solar business?

Benefit from fee-free TAFE positions, wage subsidies for apprentices and further incentives for hiring apprentices from minority groups like women and First Nations Australians.

Energy Bill Relief Fund for small businesses

Designed for small businesses struggling with high energy costs, the Energy Bill Relief Fund provides a one-time payment to help with energy bills.

  • Who’s it for? Small businesses on a separately metered business tariff with their electricity retailer whose annual electricity consumption is below the threshold for their state or territory. 
  • How much is on offer? Between $325 and $650 depending on state or territory.*
  • How to access? Businesses don’t need to apply – the rebate will be automatically applied to their energy bills if they meet the criteria.

How will this benefit your commercial solar business?

Small businesses remain eligible for this relief even after adopting solar, as the majority will still be purchasing energy from the grid.

The fact that energy bill relief has become a Budget priority means that businesses and organisations out there are hurting. This gives you an excellent conversation-starter with stalled or prospective prospects. By accessing the Energy Bill Relief fund rebate and installing solar and/or energy-efficiency equipment, businesses can maximise energy savings while doing their bit for the planet.

In summary, the 2023 Federal Budget in Australia is good news for commercial solar installers. Several new schemes and incentives will make it financially more appealing for businesses to adopt solar, storage and energy-efficiency equipment. This will increase demand for solar products and services as the race to decarbonise Australia accelerates.

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]]> 3 essential Federal Budget take-outs for solar businesses https://www.smartease.com.au/federal-budget-essentials-2022/ Thu, 03 Nov 2022 02:38:55 +0000 https://www.smartease.com.au/?p=5749 What are the Federal Budget essentials for solar businesses? The Oct 22 budget is full of opportunities for boosting your sales, expanding your offering and building your team.

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The Federal Budget was handed down last week and the energy industry featured prominently in the conversation.  

What do solar businesses need to know about it? If you’re unsure about how Federal Budget 2022 relates to your business, here’s our take. 

1. Leverage the cost-of-energy conversation

Not surprisingly to anyone in the industry, the Federal Budget warned that electricity prices were expected to rise by 56% over the next two years – and gas prices by 40%.  

Use this information to open conversations and close deals with your commercial customers.  

  • Help commercial customers understand how much their current electricity costs might increase by doing a quick calculation. What does 56% mean for them in dollars? 
  • Do they have equipment that uses gas? Replacing equipment or plant with electricity-powered alternatives means they could power it with solar – and lower their costs.  
  • Remind commercial customers that with a Payment Plan for energy-efficiency equipment, the savings on their energy bill are typically greater than their monthly instalments. This makes the purchase cash-flow positive – which is great for their bottom line. 

For more on this, read ‘How to help your customers understand – and manage – rising electricity costs.’

federal budget essentials for solar businesses

2. Consider upselling with EV-charging

The Driving the Nation Fund – a cool $500 million to help reduce transport emissions – highlights the government’s commitment to reducing transport emissions.  

In an effort to encourage EV ownership, the $345 million Electric Car Discount will exempt eligible electric cars from fringe benefits tax and the 5% import tariff.  

Use this information to offer solar customers additional opportunities to future-proof their operations by installing EV chargers. As the EV market continues to expand, forward-thinking workplaces are getting wise to the benefit of providing employees and customers this service.  

By offering workplace, or ‘destination’, EV charging, businesses can:  

  • generate additional revenue,  
  • attract and retain talent, and  
  • cement their sustainable brand reputation. 

3. Build your team with a $10K sweetener

Need to build your team?  

This Budget announced it will address growing skills demands in the clean energy sector by making 10,000 New Energy Apprenticeships available over four years (2,500 commencements a year from 2022-23).  

To help to increase apprentice uptake, boost retention and improve completions, apprentices who choose to train in new energy industries will receive up to $10,000 in staged payments.  

For top sales tips, contact your Account Manager or call us on 1300 795 695. 

Schedule a call

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]]> Federal Budget 2022: Top 3 take-outs for solar businesses https://www.smartease.com.au/federal-budget-2022/ Thu, 28 Apr 2022 10:56:07 +0000 https://www.smartease.com.au/?p=3003 Here’s what solar businesses need to know about the Instant Asset Write-Off, apprenticeships and building digital skills.

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Unsure about how Federal Budget 2022 relates to your business? Here’s what solar businesses need to know.

1. Instant Asset Write-Off program will continue

The Government will commit to an ongoing, simplified Instant Asset Write-Off program for eligible SMEs until 30 June 2023.  Businesses with an annual turnover less than $5 billion can instantly write off assets, but the equipment will have to be installed by 30 June 2023 to claim full expensing.

Take action!

Let your business customers know that they will have to act soon if they want to claim full expensing.

If your customers buy equipment on a Smart Ease Chattel mortgage plan, they’ll be able to:

  • get equipment installed without needing any money upfront* and
  • claim the Instant Asset Write-Off for the full value of the equipment**.

2. A boost for apprenticeships

Need to build your solar-installer team? This Budget announced it will funnel a further $365 million into its Boosting Apprenticeship Commencements scheme. The scheme subsidises half of an apprentice’s wages, up to $7000 per quarter, over their first year of employment. Smaller subsidies apply in years two and three.

Take action!

Enrolments for the Boosting Apprenticeship Commencement wage subsidy are being extended to 30 June 2022. If you need fresh talent in your installation business, apply soon.

Find more information at the Department of Education, Skills and Employment.

3. Promoting digital skills

The Budget announced a new, temporary tax break for businesses that invest in new technology. Eligible businesses that spend up to $100,000 a year would be eligible to deduct $120 for every $100 they spend on services that support their digital capability.

Examples of purchases covered include: improvements to cybersecurity systems, digital tracking for livestock, digital inventory tracking systems, building online sales platforms, creating or updating websites, or investing in cloud computing, data analytics, e-invoicing or portable payment devices.

Take action!

Organisations would be able to claim the tax break on purchases made between now and 30 June 2023. If you want to invest in digital capability for your own business, keep accurate records and speak to your tax advisor about eligibility*.

Got business customers that want to invest in smart tech like digital tracking for livestock or digital inventory tracking systems?

Buying the digital technology on a Chattel mortgage plan means they could get it installed without needing any money upfront* – and claim the tax break** too!

Contact your Account Manager for more information or call us on 1300 795 695.

Need more info? Contact your Account Manager.

*Subject to credit criteria and approval

**This article has been prepared for informational purposes only. Always consult your own tax, legal and accounting advisors before engaging in any transaction.

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