Environmental Upgrade Finance is a contract where a building owner borrows money for environmental upgrades and make repayments through a local council charge.
Environmental upgrade projects include:
Only some councils offer this financing option.
You own the equipment, so you may be able to claim tax on depreciation and interest. It can also be put on your balance sheet (since January 2019).
The application process can take some time. If you don’t own the building, you may need to negotiate with the building owner. If you own the building and have tenants, you may need to negotiate with them.
If you own the building, you can transfer the finance if you sell before the loan is paid for.
Not available for vacant land or residential properties.
To be eligible, the property must be ratable under the Victorian Local Government Act 1989 and used for predominantly commercial, agricultural and industrial purposes.
It's advised to always seek advice from your accountant.
For a list of simple tips to save energy in your business, visit the Victorian Energy Saver website.
Correct as at January 2018.
Level 28, Urban Workshop,
50 Lonsdale Street, Melbourne VIC 3000
Phone (03) 8626 8700
Published by Sustainability Victoria.
Sustainable Finance – Environmental Upgrade Finance
© Sustainability Victoria January 2018
Disclaimer: The information provided in this document is general advice only. It does not take into account your particular needs or objectives and does not constitute legal or accounting advice. Accordingly, any comments or statements made are not a recommendation that a particular course of action is suitable for you and you need to seek your own legal, tax and accounting advice in relation to your specific circumstances.
This information is true and correct as of January 2018