Green Tax Breaks Proposed In Australia

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

24 January 2011

Tax breaks for redevelopments that will substantially improve the energy efficiency of existing buildings are the subject of a new public consultation paper released on January 20 by the Australian Assistant Treasurer Bill Shorten and Parliamentary Secretary for Climate Change and Energy Efficiency, Mark Dreyfus.

From July 1, 2011, the Tax Breaks for Green Buildings scheme will offer businesses that invest in eligible assets or capital works to improve the energy efficiency of their existing buildings the ability to apply for a one-off bonus tax deduction of 50% of the cost of these improvements.

"The Tax Breaks for Green Buildings scheme is expected to provide a boost of around AUD1bn over the life of the scheme to help 'green up' existing buildings across Australia," Shorten said.

"The Government is keen to ensure that industry stakeholders and the general public have the opportunity to participate in developing the Tax Breaks for Green Buildings program, an election commitment announced in July 2010," he added.

The consultation paper has been prepared to explain the key features of the proposed program design, in particular, the eligibility criteria and assessment and certification processes.

"Stakeholder input and comment is essential in helping the Government to understand the needs and constraints of the targeted building sectors, and will be important in evaluating the merits of the options proposed in the paper," Dreyfus said.

"Tax Breaks for Green Buildings will unlock energy efficiency opportunities in existing buildings by providing businesses with a clear incentive to do so. The Government is committed to working with building owners to improve energy efficiency for a clean energy future," he added.

Organizations and individuals can submit their views on the proposed program design until February 18, 2011.

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