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Home Business

Deadline extension for energy incentive

July 25, 2023
in Business
Deadline extension for energy incentive
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The Council of Small Business Organisations Australia (COSBOA) has actively collaborated with various organizations to submit a joint proposal for the Small Business Energy Incentive.

Their primary objective is to strongly advocate for an extension of the Incentive’s timeframe until at least 30 June 2025. The concern driving this plea is the potential failure of the Incentive to achieve its intended goals without a more extended duration.

Presently, the proposed timeline for the Incentive’s implementation is scheduled to start on 1 July 2023 and end on 30 June 2024. However, COSBOA and other stakeholders have identified a significant issue with this plan. The necessary legislation to support the Incentive’s operation is unlikely to be passed by Parliament until August or September 2023 at the earliest. This delay means that businesses and their advisors will remain uncertain about eligibility and investment options under the Incentive until well into the financial year for which it is intended.

A critical aspect brought to light by COSBOA is that many small businesses lack internal expertise in energy matters. Therefore, to fully benefit from the Incentive, they will require professional advice. Notably, small businesses highly value advice from peak bodies and engineering consulting experts. However, a clear and consolidated approach to providing such advisory services is currently lacking.

In response to this issue, COSBOA has proposed a complementary program to be introduced alongside the Incentive. This program aims to provide tailored advice and guidance to help small businesses make informed decisions regarding smart and efficient energy upgrades. By establishing this program, small businesses can access expert insights and recommendations, enabling them to make the most of the Incentive’s advantages.

The lack of internal expertise in energy management poses challenges for many businesses. To address this, COSBOA emphasizes the importance of seeking external advice to fully capitalize on the benefits of the Small Business Energy Incentive. Notably, advice from peak bodies and engineering consulting experts holds significant value for small businesses. However, the current absence of a clear and consolidated approach hinders the provision of such crucial guidance.

To remedy this, COSBOA recommends the implementation of a specialized program that caters to smart and efficient energy upgrades for small businesses. This proposed program aims to equip businesses with the necessary knowledge and tools to make well-informed decisions, ultimately reducing energy costs and demands on the wider energy system.

COSBOA further underscores the significance of careful selection and implementation of energy upgrades to avoid adverse consequences. For instance, when electrification from gas takes place, businesses must ensure that their electric appliances are both smart and efficient, maximizing the benefits of the upgrade while minimizing strains on the electricity grid during peak demand periods.

While acknowledging the appropriateness of the eligibility criteria outlined in the exposure draft legislation for the short term, COSBOA emphasizes the need for complementary guidance showcasing smart and efficient eligible expenditures. Such guidance will assist businesses in making informed choices that not only lower energy bills but also contribute to a more sustainable energy system.

Moreover, COSBOA urgently calls for the development of a comprehensive long-term strategy encompassing incentives, capacity-building initiatives, and appropriate product standards or regulations. This strategy would serve as a sturdy foundation for businesses to invest in high-quality electrification and energy efficiency upgrades, fostering a sustainable and thriving small business sector in the long run.

Please see here for the full submission.

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Copyright for syndicated content belongs to the linked Source : Dynamic Business – https://dynamicbusiness.com/topics/news/deadline-extension-for-energy-incentive.html

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