Extension of federal and state incentives
Multiple federal and state incentives were set to end but recent announcements have extended various incentives that will reduce costs of energy efficiency upgrades, including LED lights, for eligible businesses.
- Great news for business around Australia, the federal government has extended the 100% instant asset write-off up to $150,000 to 31st Dec 2020! This means you still have time to upgrade your lights to LED, you may be able to instantly write these assets off*.
- The Victorian Energy Efficiency Upgrade (VEU) program that was suspended in April was reinstated last month. The good news is that commercial incandescent lighting upgrade incentives are available again.
- The South Australian Retailer Energy Efficiency Scheme (REES) will be replaced with a Retailer Energy Productivity Scheme (REPS) on 1st Jan 2021. REPS will provide incentives for activities that either improve energy efficiency and/or shift the time when energy is used.
- The federal government is providing $20k grants to dairy farmers wanting to reduce energy consumption as part of the Federal Energy Efficient Communities Program. Farmers looking to upgrade to LED lights could receive the grant to reduce the cost and carbon emissions and increase sustainability, cash flow and ROI.
On top of all these, there are more incentives and rebates available, meaning there are tens of thousands of dollars available right now for businesses to upgrade to LED lights. Instead of paying electricity companies for no ROI, invest in assets to improve cash flow and reduce carbon emissions.
*Subject to terms and conditions. Please speak to your financial advisor or accountant regarding the above information.