In the lead up to the budget announcement next week, no legislation has been introduced to support the start of the Tax Breaks for Green Buildings program, prompting concern in the industry that the scheme will be postponed or dropped.

David Parken, CEO of the Australian Institute of Architects says:

“While we have good regulations for new buildings that improve energy efficiency and reduce carbon emissions, existing built stock is a sleeping giant and needs a total makeover.

“If industry concerns are realised in Tuesday night’s budget announcement, it will be extremely disappointing,” Parken said.

The Institute voiced its support for the program when it was announced as an election commitment of the Gillard Government in 2010 and industry members have gone to great lengths to work with the government in fine tuning the logistics of the program.

“This scheme goes a long way in securing a reduction in carbon emissions, but also has the potential to create thousands of much needed jobs in the building and construction industry.

“To delay or indeed drop the scheme would be counterproductive to Australia’s commitment to reducing greenhouse gas emissions and a blow to the green jobs sector,” Parken said.

Businesses that invest in eligible assets or capital works would have extra incentive to improve the energy efficiency of their existing buildings.

Under the program, businesses would be able to claim a one-off bonus tax deduction of up to 50 per cent of the cost of the eligible assets or capital works. The scheme was expected to commence from 1 July 2011, but was postponed following extensive industry consultation, with the Australian Government committing to a 1 July 2012 start date.

According to the chief executive of the Green Building Council of Australia (GBCA), Romilly Madew, scrapping the promised $1 billion Tax Breaks for Green Buildings program would prevent Australia from picking the ‘lowest of the low hanging fruit’, says the nation’s leading green building organisation.

“Buildings represent the fastest, most cost-effective opportunity to reduce our greenhouse gas emissions. They are truly the lowest of the low-hanging fruit,” she says.

“The Green Building Council of Australia was supportive of the Australian Government’s decision to put a price on pollution, because we understood it would be supported by a range of complementary measures to support energy and material efficiencies within the property and construction industry,” Madew says.

“The Tax Breaks for Green Buildings program is an essential component in this package of complementary measures. Without this program, the greatest opportunity to improve energy efficiency, at the least cost, will be missed,” Madew adds.

Architecture & Design Team

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