Copy A major election promise by Labor was a $2.3 billion Cheaper Home Batteries Program to cut battery costs by about one-third. It is to be done by way of a rebate is based on a battery's usable storage capacity and excludes installation costs. It offers roughly $370 per kilowatt-hour (kWh), equating to about 30% off the battery's base price. For example, a 13.5 kWh Tesla Powerwall 2, priced at around $11,900 (plus installation), would attract a rebate of nearly $5,000. Create a Continue with Apple When COVID hit, cancelled trips left us with spare cash, so we installed a Tesla Powerwall. It's been reliable - even sent a text before a cyclone saying it was charging from the grid in case of a blackout. Sadly the numbers don't stack up. Consider a typical day in a household with solar and a battery. It starts with the battery at minimum and no solar power. At this point, all electricity comes from the grid. As the sun rises-if it does-solar begins to offset grid use. If conditions are good, solar output exceeds usage and the battery charges. But by afternoon, solar drops. When it can't meet demand, the house draws from both the battery and the grid. Often, the battery ends the day nearly empty-especially in winter when the sun sets early. To see how the numbers work let's pretend it's been a perfect day. And note that solar batteries are required to hold back around 15% of their capacity as a reserve in case of blackout - to keep essential systems like gates and lighting running during a power failure. That reserve isn't available for day-to-day household use, reducing the battery's effective capacity even further The sun is shining brightly, and by sunset your battery is full - charged entirely from your own solar panels at zero cost. Keep in mind this is also the time most people return from work, just as power generation fades and demand surges. We're currently paying around 30 cents per kilowatt-hour, which means a fully charged battery holds just $3.60 worth of electricity. It's great to be using free power from your battery, but in reality, that full battery is only saving $3.60. And solar generation varies greatly depending on where you live, how many panels you have, and even the direction of your roof. Still, let's assume you manage to fully charge and use your battery on 200 days of the year. That means the total annual saving amounts to just $720 - not nothing, but hardly the game-changer it's claimed to be. Given Labor's proposal offers a $5,000 discount on a battery like a Tesla Powerwall, the homeowner is still left with the balance - around $12,000 - once installation is included and the total cost climbs to about $17,000. At annual savings of just $720, it would take 16 years to recover the cost - which, by coincidence, is also the estimated lifespan of the Tesla Powerwall battery. In other words, just as you've broken even, the battery may be ready for replacement. Another major drawback is its basic unfairness. The people most likely to be cash-strapped are renters, and they cannot install solar and batteries on a rental property because they'll never get their money back. There's an argument that savvy landlords might install the wiring, solar panels and battery to increase rents, but we're heading for an unholy alliance of Labor and the Greens. It is Greens policy to freeze all rents - so what landlord would go to the expense of installing a solar system when there's every chance their rents would be frozen? Government's solar rebate plan not what it's cut out to be ASK NOEL Question: I am 71, with a superannuation pension account balance of just over $1.7 million and an accumulation account exceeding $100,000. I work part-time, earning around $40,000 annually, which covers most of my expenses. I currently withdraw only the minimum required amount from my pension account. Given my circumstances, is there any advantage to keeping the accumulation account? Answer: Your accumulation account is taxed at a flat rate of 15 per cent, which is marginally lower than the 16 per cent marginal tax rate (plus 2 per cent Medicare levy) on your $40,000 income. It may be beneficial to keep the funds in accumulation until you stop earning an income. Question You have written previously about bring-forward non-concessional superan?nuation contributions which this year has a cap of $360,000 for eligible contributors. Does the contribution need to be a single payment or can it be staged through the year? Is there a form or notification that I must provide to the ATO or my superannuation fund that I am using the bring-forward arrangement? Answer: Mindy Ding of the Entireti Technical team tells me there is no notification that is required to advise your super fund. After the contributions are reported to the ATO by the super fund, the ATO will automatically reconcile the amount(s) against your non-concessional contribution cap under the bring forward rule where eligible. Question: Why does the current government require Clearance Certificates for Capital Gains Tax from every property seller in Australia? What is the purpose of this? I understand the need to identify foreign property owners for CGT, but why apply it to everyday Australians who own and reside in just one property? I am 68 and live on acreage. I don't want to downsize because my one-acre block brings me joy through flower and vegetable gardening in my retirement. The issue is that many people might miss this requirement and risk losing a significant percentage of their home's sale price. What can be done to prevent this? Answer: Mark Molesworth Tax partner of BDO tells me the tax law in relation to withholding tax on sales of Australian real estate has been extended from 1 January 2025. For contracts entered after that date all sellers must either obtain a residency clearance certificate (if they are a resident of course) or suffer the buyer withholding 15 per cent of the market value of the property. These rules have progressively been extended by governments of all persuasions since they were first introduced in 2016 It's great to be using free power from your solar battery, but in reality, that full battery is only saving $3.60. Image Shutterstock Share