Yes, solar power systems can be deducted.
A spokesperson for the Australian Taxation Office confirmed to My Business that solar power systems are eligible for the tax break, provided it is legitimately used for business. “The cost of a solar power system can be claimed under the $20,000 instant asset write-off where the system costs less than $20,000 and it is bought and used by an eligible small business to generate electricity for use in the business,” the spokesperson said. “Where a portion of the electricity generated by the system is used for private purposes (for example, in a home-based business), the cost of the system must be apportioned when claiming the instant asset write-off. “A reasonable method of apportionment could be the ratio of electricity consumed by the household compared to the electricity consumed by the business.”
At the time of writing this article, Australian small businesses have until 30th June 2019, to take advantage of the less than $20,000 instant asset write-off.
If you have any questions relating to the instant tax write off or solar systems, please contact your Wardle Partners Accountant on (07) 5492 0300.