Make The Most Of Your Tax Deductions With Solar and the EOFY 2016
In May 2015, Joe Hockey the then-Treasurer announced a major jump in the value of items that businesses could write off immediately from $1,000 to $20,000 instead of the usual depreciation over several years.
“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% tax deductible from tonight,” said Mr. Hockey; who at the time stated the incentive could potentially benefit 96 percent of Australian businesses. What a lot of businesses don’t understand is this is a gift that just keeps giving as while this change applied to assets acquired after 7.30pm on 12 May 2015, it actually continues until 30 June 2017. Even better it is 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 although we do recommend you seek professional tax advice.
Solar panels make a significant positive impact on a small business’s bottom line. In fact, we have a number of case studies collated for a variety of businesses showing exactly how much our Commercial Customers have saved:
- Ocean Shores Country Club – Energy Saving: $28,700 per year
- Solo Waste & Recovery – Energy Saving: $46,206 per year
- Ballina Car Wash – Energy Saving: $19,900 per year
- Bartlett Farms – Energy Saving: $22,200 per year
The important thing to remember is that Solar is ideally suited to many small businesses as the power is produced during business hours; so the need to draw electricity from the mains grid at peak daytime rates is greatly reduced. Another time-sensitive 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.
With the continual decrease in pricing $20,000 can by a large solar power system; or a substantially-sized system with battery storage.
Here is why you should get a solar power analysis done for your business immediately:
- Acting now could save you Thousands of Dollars both immediately with the Financial Year End, as well as in the future with lower operating costs!
- Solar power remains the best way to cut a business power bill right down if not eliminate it completely.
- Most commercial solar installations equate to payback periods of less than three years. (Read our Case Studies)
Rebates for larger scale solar power systems
Generous solar power rebates are currently still available for commercial solar power systems. These may be in the form of either STCs (small-scale technology certificates) or LGCs (large-scale generation certificates).
STCs are available for solar power systems of less than 100kW in total system capacity, while LGCs are available for solar power systems of 100kW and above. These Certificates are currently under threat of being abolished by the Government, effectively increasing the cost of a Solar Power Systems for your business by 40% if not taken advantage of now!
Don’t waste money or pay more on Tax than you really need to. Contact SAE Today to discover exactly what you can save your businesses bottom-line.
Still got questions and can’t wait for us to call? Give us a call now: 1300 18 20 50