Tax Breaks for Green Buildings

14 Feb 2011Archived News Climate Change Matters

In a joint announcement, Assistant Treasurer Bill Shorten and Parliamentary Secretary for Climate Change and Energy Efficiency, Mark Dreyfus, released the Tax Breaks for Green Buildings Consultation Paper.

The proposed Tax Breaks for Green Buildings program will provide tax incentives to encourage energy efficient retrofits of commercial buildings. Businesses that invest in eligible assets or capital works to improve the energy efficiency of their buildings will be able to apply for a one-off bonus tax deduction. Approved projects will be able to claim a bonus tax deduction of 50 per cent of the eligible assets or capital works on proof of performance levels being met. The retrofit must be assessed by an accredited National Australian Built Environment Rating System (NABERS) assessor before and after the project. To be eligible for the tax break, the building must achieve an improvement in energy efficiency from 2 stars or lower to 4 stars or higher between 1 July 2011 and 30 June 2015.

The program is expected to provide a boost of up to $1 billion over its life to encourage business to undertake major energy efficiency retrofits. The Tax Breaks for Green Buildings program is scheduled to commence from 1 July 2011 with the Government seeking to introduce legislation establishing the program in the first half of 2011.

This program is currently open for submissions, however they close Friday 18 February 2011.

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