Commercial EV Chargers and the Instant Asset Write-Off

If your business has been thinking about installing EV chargers on your premises, doing so before the end of the financial year could be a smart move thanks to the current Instant Asset Write-Off (IAWO) scheme.

Closing on June 30, 2024, the Instant Asset Write Off scheme now has a threshold of $20,000 per asset, significantly less than in past years. This means that while businesses are no longer able to write off the cost of a new ute, the opportunity is there to instantly write-off the cost of other essential equipment like commercial EV charging infrastructure.

Of course, before making any financial decisions, it’s important to speak to your accountant and consider your specific situation. But here's a look at how the IAWO scheme can work for eligible businesses, and why it makes sense to book in your EV charger project in time to take advantage of it.

How Does the Instant Asset Write-Off Work? 

The IAWO allows small and medium enterprises to “write off” (or deduct) the full cost of eligible assets from their taxable income in the same year they buy them. Doing so reduces the taxable income of your business, so you’ll reduce your tax liability while enjoying the benefits provided by your new asset.

It’s key to note that the IAWO scheme operates on a per-asset basis, which means the deduction can be applied to multiple assets, each of which must cost less than $20,000.

What else do I need to know? 

There are a few more things to consider:

• Timing is important: the asset must be used or installed ready for use in the income year in which you claim the deduction. If you’re hoping to purchase and write-off commercial EV chargers, this means you can't claim the deduction unless your charging stations are installed and being used for your business by June 30.
• The assets may not even need to be purchased outright – for some businesses, they can be financed via a lease or loan and still be eligible. Talk to us about $0 upfront monthly repayment options.
• The scheme applies to businesses with an aggregated annual turnover of less than $10 million.

Why EV Chargers?

In 2023, Australian EV sales rose by an impressive 161 percent with 87,217 vehicles sold nationwide. Over half a million Australians say their next car will be an EV - chances are, your staff and customers are among them.

There are obvious benefits for businesses who install EV chargers on their premises – here are just a few.

• Customer service - offering a "perk" like charging facilities creates a competitive advantage.
• Talent attraction and retention - employees driving EVs prefer workplaces where they can conveniently charge their vehicles.
• Attracting visitors - the presence of charging stations influences EV drivers' destination choices.
• Government grants and incentives - businesses can benefit from various schemes aimed at promoting EV adoption. Fill in our EV Charger Grant Eligibility form to find out if you may be eligible for current Regional NSW and WA grants!
• Sustainability and ESG – the presence of EV chargers supports sustainability values and signals your commitment to the wider public.

Why Smart Commercial Solar?

With over twelve years' experience in providing renewable energy solutions for Australian businesses, Smart Commercial Solar are the experts in the field. We've installed EV chargers as part of solar and storage projects for several years and are now proud to offer a comprehensive standalone charger package.

Priced at under $20,000 and featuring premium equipment selected by our team of engineers, this is an ideal investment for businesses looking to take advantage of the Instant Asset Write Off.

The Smart Commercial EV Charger package includes:

• 2 x EVOS Australian-made charging stations
• Software subscription
• Installation (wall-mounted or pedestal)
• First 12 months of Smart Active service

Email contact@smartcommercialsolar.com.au to book in your EV Charger installation or chat more about this offer today.

Where can I find out more? 

While the government web pages on the IAWO lack detail, there are some great private sector resources available if you'd like to do more reading. The most comprehensive information we found was on the Smart Company website; we also referenced this great blog from Accountants to Business.

As mentioned above, it's essential to speak with your own accountant before making any business or taxation decisions. This article does not constitute taxation advice and Smart Commercial Solar are not responsible for any financial decisions made as a result of the information contained within.