CA ANZ has lodged a submission on the exposure draft legislation and explanatory materials (EM) to implement the Small Business Energy Incentive (SBEI). Key points in the submission include:

• The references to “fossil fuels” in the draft legislation may make it difficult for SMEs to apply to the legislation as it is undefined, and it is possible that the ordinary meaning of the term is misunderstood.
• The EM should clarify the acceptable sources which SMEs should or could access to determine energy efficiency.
• It would be desirable from both a policy and compliance reduction perspective to extend the SBEI to integrated capex projects involving the installation of solar panels, batteries and all outlays necessary to make the system work as a whole.
• The EM should clarify that the SBEI is attracted where a component of an existing machine is replaced to cater for electrical capability.
• The EM should clarify that the SBEI is attracted when an electrically powered generator (connected to mains supply) is purchased to cater for the scenario where a clean energy source cannot provide the power necessary to conduct business operations (e.g. where overcast weather impacts the performance of solar panels). 
• Given that many small businesses also claim deductions for home office expenses, CA ANZ suggests that the EM (e.g. after para 1.63) provides an example addressing the purchase of energy efficient items in a home office where deductions are typically apportioned between income producing and private use.