Australia Extends Consultations For Tax Breaks For Green Buildings

by Mary Swire, Tax-News.com, Hong Kong

26 April 2011

The Australian Government has announced that it will conduct further consultations around the Tax Breaks for Green Buildings program to deliver the best outcomes for industry.

The program is being developed to support businesses that invest in eligible assets or capital works to improve the energy efficiency of an existing building.

Assistant Treasurer Bill Shorten said the Government has agreed to extend the time for consultation to consider stakeholder proposals on the most effective way to implement the program. In order to facilitate the further consultations with industry, the program will now come into effect on July 1, 2012.

The Government will continue to consult widely to ensure the scheme provides the right incentives for building owners to implement energy efficient retrofits.

"Further input from industry stakeholders will help make the Tax Breaks for Green Buildings program a viable and successful initiative that delivers real returns for our environment," Mr Shorten said.

"We understand that during initial consultations, some sectors of the industry were concerned about how the scheme would operate.

"That's why we will shortly establish a high level roundtable, chaired by an independent industry expert, to discuss key design elements of the scheme.

"This will support ongoing discussions with industry leaders to consider how we can maximise the benefits of the program, within the current funding envelope," Mr Shorten said.

The Parliamentary Secretary for Climate Change and Energy Efficiency, Mark Dreyfus, said that although consultation on the scheme will be extended by one year, it will still provide AUD1bn in support to the property industry over eight years to improve the energy efficiency of older, less-efficient buildings around the country.

Issues raised include whether the benefit should be provided as a bonus deduction (as proposed) or as a refundable tax credit, whether the program should support re-fits for buildings that are already rated above two stars on the National Australian Built Environment Rating System (NABERS) rating system, and whether the program should provide more tailored support for the refit of hotels.

Exposure draft legislation will be released later in the year. The Government will seek to introduce the legislative package towards the end of the year, so that businesses have time to prepare.

Information on Tax Breaks for Green Buildings information is available on the Department of Climate Change and Energy Efficiency website.

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