The Property Council welcomes Malcolm Turnbull’s plan to introduce accelerated depreciation for capital spending on green buildings.

Accelerated ‘green’ depreciation will fast-track efforts to retrofit existing buildings to higher environmental standards.

“In the current economic climate, an accelerated depreciation scheme for green building retrofits will both stimulate the economy and deliver measurable sustainability dividends,” said Property Council CEO Peter Verwer.

There are more than 330 million square metres of commercial space in buildings across Australia, most of which is more than 25 years old, that could be upgraded under the Opposition’s proposal.

“While energy efficiency measures pay for themselves over the long-term, there is currently a large mismatch between investment in energy efficiency and a return on that investment.”

“Accelerated depreciation improves payback times and stimulates investment.”

“This scheme will unlock private capital and get it back to work.”

“Green depreciation is a key element of a green “New Deal” that can create jobs, lifts economic activity and deliver environmental dividends.”

“A 30-35 per cent improvement in building efficiency would save 203Mt of carbon over a decade. That equates to removing 6.4 million cars from our roads every year.”

Verwer noted that accelerated depreciation rates should apply to both plant and building structures.