AUSTRALIA has got a head start on meeting its targets for emission reduction. The Australian government has offered a one time  tax break as an incentive to encourage businesses to improve the energy efficiency of their buildings.

From July 2011, businesses that invest in eligible assets or capital works to improve the energy efficiency of their existing buildings– from 2 stars or lower to 4 stars or higher– can apply for a one-time bonus tax deduction of 50 per cent of the cost of the eligible assets or capital works. The green building tax break - which will run from mid-2011 to mid-2015 – is expected to cost AUD $180 million by 2012-13, mainly in lost tax revenue, and $1 billion by 2018-19. The government plans to pay for the first $180 million of the green building tax break from the $652.2 million renewable energy and energy efficiency fund it created in the May budget.

Currently, commercial buildings account for approximately 10 per cent of Australia’s greenhouse gas emissions with the majority of these emissions being related to electricity consumption. As buildings typically last for decades, action to improve the energy performance of Australia’s building stock is seen as an important step to achieving Australia’s emissions reduction objectives.

The initiative is also expected to boost the competitiveness of Australian businesses, by reducing their energy costs.