Hotels that improve the energy efficiency of their commercial buildings will be eligible for big tax deductions under a Gillard Labor Government.
For example, a hotel that invests $1 million on assets or capital works to significantly improve its energy efficiency rating, such as energy efficient lighting or air-conditioning systems, will be eligible for a bonus tax deduction of $500,000.
This will reduce the hotel's tax bill by around $145,000 and it will also enjoy ongoing savings from lower energy costs.
AAA Rated Hotels which are assessed by the National Australian Built Environment Rating System (NABERS) are eligible for the Tax Breaks for Green Buildings initiative.
From July 1, 2011, eligible hotels which undertake capital works to improve energy efficiency of their existing buildings will be able to apply for a one off bonus tax deduction of 50 per cent of the cost of eligible assets or capital works.
The total cost of this package is $180 million over the forward estimates and around $1.0 billion out to 2018-19. Funding over the forward estimates has already been provided for in the Budget through the Renewable Energy Future Fund.
