Several leading business organisations have called on the Federal Government to extend the timeline of the Small Business Energy Incentive from the current 30 June 2024 deadline to 30 June 2025.
The call was led by the Council Of Small Business Organisations Australia, the Australian Industry Group and the Australian Chamber of Commerce and Industry, among others who have manifested their stance in a joint submission.
“Small businesses currently face rapidly escalating energy costs, and improved energy performance through energy efficiency and electrification are the best ways to help businesses tackle rising energy bills and drive down emissions,” the submission stated. “Without an extended timeline, the Incentive risks failing to achieve its objectives.”
The parties also pointed out that legislation that will underpin the incentive is unlikely to be passed by Parliament until August or September 2023 at the earliest, leaving businesses uncertain about eligibility and what they can use the Incentive to invest in, leaving not enough time for businesses to implement energy upgrades.
With the proposed deadline, it will allow businesses to fully take advantage of the incentive and create more impact for these businesses and for the country as a whole.
“Improving energy efficiency will require significant planning, design, reorganisation, evaluation and training to integrate a new or different piece of equipment into their business. For small-business owners, this process takes precious time when they are already under pressure from economic conditions, rising costs of doing business and ongoing worker shortages,” the group pointed out.
The groups also highlighted the problems small businesses are facing in getting the advice they need in order to maximise the value of the incentive.
“Many businesses lack internal energy expertise and will need to access advice to make the most of this Incentive,” they said. “There is currently no clear or consolidated approach to offer such advice, and we recommend complementing the Incentive with a new program to provide advice and guidance on smart and efficient energy upgrades for small businesses.”
The groups also stressed the importance of selecting the right equipment in making their electricity upgrades.
“Complementary guidance should highlight smart efficient examples of eligible expenditure to help businesses make choices that drive down both their energy bills and demands on the wider energy system,” the statement continued. “It is also urgent to develop a longer-term strategy, involving incentives, capacity-building and product standards or regulation where appropriate, that provides a durable basis for business investment in high-quality electrification and energy efficiency upgrades.”
