This is general information, not tax advice. The ATO and a registered tax adviser are the authorities here, and the answer changes with your circumstances.
The usual household case
Most households do not receive money. You sign an assignment form, the installer creates and sells the STCs, and the quote shows a lower price. Because you have paid less rather than been paid, the ATO has generally not treated this as income you declare. If you are not running a business from the property, you normally do nothing at tax time. That is also why this is sometimes asked as “is the solar rebate income” and “do I declare STCs on my tax return”, and for a household taking the discount the working answer to both is generally no. See is the solar rebate taxable for the longer version.
When it is different
- You sell the STCs yourself. If you keep the right to create them and sell them to a trader, cash comes to you. Whether that is assessable depends on your situation, and ATO guidance on small-scale technology certificates should be your first stop.
- Landlords. A system on a rental property is part of the property’s income and deduction records. The cost, any depreciation and the STC discount all sit there.
- Home businesses. If part of the system is used to run a business, the business portion is treated through the business.
Do I declare STCs for a business?
A business buying solar usually treats the system as a depreciable asset, with the STC discount reducing the cost or the STC proceeds being recorded as income, depending on how the deal is structured. If you are registered for GST, the installer’s invoice, the STC assignment and any recipient created tax invoice matter. RCTI, GST and ABN for STC payments lays out the paperwork. A commercial system above 100 kW has a different certificate path again, covered at mid-scale solar STCs.
GST and the discount
The ATO has said GST on a system with assigned STCs is calculated on the price before the discount. Your invoice can therefore show GST greater than 10 percent of the amount you pay. Nothing is wrong when that happens. See GST on STC sales if you are on the installer side.
What to keep
- The quote showing the STC discount.
- The signed assignment form.
- The tax invoice and proof of payment.
- The installation certificate and any photos you were sent.
What this means for you
For an owner-occupier taking an upfront discount, a tax event is unlikely. For anything else, ask an accountant before you buy rather than after. If you are an installer handling the certificates behind a customer’s discount, how STC trading works and pricing show how the sale and payment run.