“A reasonable method of apportionment could be the ratio of electricity consumed by the household compared to the electricity consumed by the business.” What about people working from home? “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,” the ATO representative said. Just be mindful that you won’t get a complete deduction here, as you’ll have to factor in the amount of power being used for household reasons. The cap is $20,000 and you can purchase multiple work-related items. Not familiar with the instant asset program? It’s a highly successful scheme rolled out by the ATO that enables eligible companies to deduct the work-related portion of the cost of new or second-hand depreciating assets.

“The cost of a solar 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 representative said. An Australian Tax Office representative confirmed that a rooftop system could be claimed under the $20,000 instant asset write-off scheme. If you are running your business remotely, then a solar system can be deducted from your EOFY taxes. Make use of the instant asset write-off scheme Solar solutions are your best friend when working from home – and there are ways you can even claim it on tax, so you can begin to enjoy the savings sooner. Unfortunately it also means a greater drain on the electricity grid, which in turn leads to higher bills. This allows for better work/life balance, reduces overheads and limits our environmental impact by eliminating commuting and driving less. More people in the modern world are either working on a flexible arrangement or starting their own business at home.

Ato small business tax write off