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2017 Federal Budget – Impact on Renewable Energy

In a win to the renewable energy industry coming from the 2017 Federal Budget, its small business who continue benefiting from the extension to the “small business tax break”.

“Using tax benefits outlined in the 2017 budget an SME will actually get PAID to install solar in the first year – and then the electricity savings come in on top!” Greg Ferrett – ASM Money

The tax incentive announced in the 2017 Federal Government Budget extends the small business tax break. The best investment a small business can make is a renewable energy project.

Here are the numbers.

“With the small business tax breaks [announced in the federal budget], there has never been a better time to buy solar” John Grimes –Australian Solar Council

What impact to your small business if you could receive the savings with no deposit and repayments of 0.4 of the year one savings?

i.e. 15Kw Solar System Installed for $20,000*
Year 1* Year 2* Year 3*
Potential Savings on Electricity  $7,200  $7,560  $7,938
GST Savings  $1,818  $-  $-
Tax Savings (Based on federal budget)  $5,175  $-  $-
Total Savings  $14,193  $7,560  $7,938
Payments  $6,108  $6,108  $6,108
Cash benefits to the business  $8,085   $1,452   $1,830 
*purchase price is based on $1.22 plus GST a watt and savings assume unit KWH cost is $0.30 and average annual production of a 15kw system over 12 months in zone 2. Actual production may vary. Repayments based on four-year chattel mortgage

Assuming the business has an;

• Active ABN and trading for two or more years,
• A clear credit file and
• One asset backed director or business partner as guarantor (and no asset backing if in business for more than 5 years subject to credit approval)

These savings can be generated with a no-deposit finance solution and just a driving licence.

Window of opportunity

While the tax benefit has been extended, between now and 30 June 2017 there is a major opportunity to those businesses now also.

If a business wants to install solar with no deposit and are ready to install and settle by June 30th they could get the full impact of tax savings to their bottom line straight away and the bonus of ongoing electricity savings.

No cash down – savings on electricity – tax savings – GST benefit.

Call to get in touch with your local ASM Money representative to talk about the potential today.

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