Big tax breaks for 'greening' buildings

Age
23 February 2011, Page: 10

TAX cuts that pay for up to half the cost of "greening" commercial buildings are available under the federal government's program to cut greenhouse emissions in the property sector. Mark Dreyfus, parliamentary secretary for climate change and energy efficiency, said commercial buildings accounted for more than 10% of national greenhouse gas emissions. "Businesses that improve the energy efficiency of their existing buildings from two stars or lower NABERS rating to four stars or higher will be able to apply for a one off bonus tax deduction of 50% of the cost of the eligible assets or capital works", Mr Dreyfus said.

"The tax deduction will cover specified capital expenditure incurred as part of a qualifying retrofit of an existing office build ing, hotel or shopping centre". Mr Dreyfus's comments came in opening a forum on green buildings by the Royal Institution of Chartered Surveyors in Melbourne. "This initiative is expected to provide a boost of almost $1 billion over the life of the scheme", he said. "The design of the scheme is currently being developed".

A public consultation paper had been prepared to explain the key features of the proposed program in particular, eligibility criteria and assessment and certification processes, he said. Submissions closed last week, and the government would consider feedback before introducing legislation before July 1 when the scheme starts. Mr Dreyfus said the measure of mandatory disclosure, introduced last year, was already changing the way business was done in Australia. "Building owners, tenants and financiers are demanding greater information on energy performance to be available", he said.

Under the disclosure, most sellers or lessors of office space with a net lettable area of 2000 m² or more must obtain and disclose an up to date NABERS energy efficiency rating. Mr Dreyfus said improvements to the Building Code of Australia also meant future buildings would meet minimum energy performance requirements. This program set a pathway for better buildings and a consistent set of rating tools. Mr Dreyfus said the Green Building Fund had already committed $85 million for 232 projects. The fund had been extended by $30 million, he said.