Up to $20k tax break for SMEs that install solar, electrify heating, and more in pre-budget promise

SMEs will get a tax break of up to $20,000 for installing solar panels, electrifying their cooling and heating, installing batteries and heat pumps, and investing in induction cooktops to replace gas under a new policy announced ahead of this month’s federal budget.

Treasurer Jim Chalmers announced the Small Business Energy Incentive on the weekend, saying up to 3.8 million small and medium-sized businesses would benefit from the tax incentive to make their energy usage more sustainable and efficient.

Under the budget policy, businesses with turnover up to $50 million will be entitled to a bonus 20% tax deduction on batteries and other electrical devices when they invest up to $100,000 to swap out fossil fuel energy and technology.