Tuesday, 22 December 2009

SA: Save energy, save tax

Independent Weekly
Friday 18/12/2009 Page: 26

New renewable energy projects in South Australia will get big tax breaks, says the State Government. From July, next year, investors in large-scale renewable energy projects will get payroll tax rebates for the labour associated with direct, on-site construction. Rebates will be set at a maximum of $5 million for each solar project and $1 million for every wind energy project and will remain in place for the next four years.

"I expect the effect of this rebate will be to provide a payroll tax holiday for most, if not all, new wind farms over the four-year period." Premier Mike Rann said in a statement released from the Copenhagen climate change summit. "It will also provide significant relief for investors in large-scale solar energy projects."

The premier said the investment incentives would help SA reach its target of having 20% of all electricity generated from renewable energy by 2014 and 33% by 2020. "The Government recognises that these goals will not be achieved by only the attractiveness for investors of our excellent renewable energy resources alone," he said. "An important part of our success has been implementing regulatory regimes that provide efficient and certain processes for investors."