The tax treatments of capital investments in renewable energy

Source: Australia Institute
"In Australia today, mining and the airlines are the industries receiving the most generous accelerated depreciation provisions. Given the Australian Government’s stated intention of reducing greenhouse gas emissions, it is inconsistent, and inefficient, for it to provide accelerated depreciation allowances to high-emission industries (thereby encouraging them to invest more heavily in emission intensive activities) while excluding the renewable energy industry from such concessions. This paper argues that the money currently spent subsidising new investment in mining and airlines should be transferred instead into accelerated depreciation provisions for the renewable energy industry."