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Federal Government moves to reduce value of solar rebates
6 December 2010
In a bid to divert complaints about rising electricity prices, the Federal Labor Minister for Climate Change, Greg Combet, has announced that from 1 July 2011 the solar credits scheme will be scaled back. This will reduce the average rebate for a 1.5kW system from $6,200.00 to $5,000.00.
Federal Labor Climate Change Minister, Greg Combet, has announced that the commencement of the phase-out of the government’s renewable energy certificate scheme (REC) has been brought forward by one year.
The Minister said that the solar credits multiplier would be reduced from 1 July 2011 on the basis of apparently significant reductions in the cost of a solar energy system and the fact that the government wanted households to bear some cost of the system.
Accordingly, the following phase-out regime will apply so that the multiplier will be reduced as follows:
- 5 to 4 on 1 July 2011
- 4 to 3 on 1 July 2012
- 3 to 2 on 1 July 2013
- 2 to 1 on 1 July 2014
The change will not affect any system installed before 1 July 2011. The impact from 1 July is expected to reduce the value of the rebate on a 1.5kW system from $6,200.00 to $5,000.00.
The government expects that the effect of the decision will result in a reduction of $12.00 in the electricity bills of all households in 2011 compared to the position if no reduction were implemented.
So, what does this mean for business and, in particular, for electrical contractors who have geared up to implement solar?
NECA believes that the solar energy industry in the residential area is still going to progress notwithstanding the reduction/ phase-out of tariffs and rebates. Technology will produce cheaper and more effective products and consumers will continue to upgrade facilities and install new systems to offset the increasing cost of energy.
The requirements for clean and green buildings will increase and as new subdivisions or renovations and additions take place there will be a need for solar and other renewable energy options.
We also see continued growth of renewable energy systems in the commercial and industrial sectors driven by the cost of energy from traditional sources and legislative changes aimed at improving the carbon footprint of buildings. Larger solar and wind facilities will continue to be implemented, particularly in regional areas where there is potentially a change coming in the structure of generation and transmission facilities.
Australian Taxation Office to target BER builders and installation installers
6 December 2010
The Australian Taxation Office has announced that builders (and by implication other contractors and subcontractors) involved in the discredited Federal Labor Government’s Building the Education Revolution and Home Insulation schemes are to be the subject of a tax avoidance crackdown
The apparent rorts that have been identified through a range of inquiries into the Building the Education Revolution and Home Insulation schemes have now resulted in the Australian Taxation Office commencing a tax avoidance crackdown.
Thousands of businesses are apparently to be contacted in the near future with requests for names, addresses and bank account details. The ATO is reported to have confirmed that this data will be matched against information held by the Federal Department of Climate Change and energy Efficiency and information to be provided by State and Territory education departments and groups contracted to manage the programs.
While the Federal Government has been downplaying the ATO activity there is no doubt that the ATO is empowered to fine and prosecute transgressors. It will be inviting those under scrutiny to own up to any transgressions in a bid to recover potentially hundreds of millions in unpaid tax.
NECA invites ASPs to get update on Scheme changes
17 November 2010
Following the recent ASP Scheme review the NSW Government has accepted recommendations made from within the industry and presented by the Better Regulation Office
As part of the changes the administration of the scheme has moved from the Office of Fair Trading to Industry and Investment.
We are pleased to announce that NECA has been asked to sit on the advisory committee responsible for moving forward implementing the changes. NECA has over 200 members that are affected by any changes to the regulations.
NECA NSW CEO Lindsay Le Compte has organised a meeting with Jim Wellsmore to meet with our members to examine the outcomes and outline what they may expect for the changes, as well as discussing concerns raised by the ASP’s over meters, outages etc.
NECA website development
16 November 2010
The NSW section of the site is currently under review and development as part of the forthcoming announcements of new and enhanced services to our members.
More will be announced soon.
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