The Australian Labor Party has released a policy focused on increasing business investment in energy saving projects. The policy, Australian Investment Guarantee, will allow all Australian businesses to immediately deduct 20% of investment in eligible depreciable assets over $20,000.  Eligible assets include assets that lower energy use and improve energy efficiency. The policy is designed to be easily accessible to all businesses and will operate through the Australian tax system.

In 2016, ASBEC’s Low Carbon High Performance report called for the introduction of green depreciation, to accelerate uptake of energy upgrades to existing commercial buildings and we welcome this policy.  The Property Council of Australia has also supported the policy as a ‘powerful tool for accelerating energy efficiency gains across different industries, but especially in the built environment.’ The Energy Efficiency Council has noted that it will allow businesses to immediately reduce energy bills by investing in energy upgrades.

Energy Efficiency Council media release on the policy here.

Property Council media release on the policy here.