Guide to small business entity concessions

Immediate deduction for certain prepaid expenses

What accessing this concession means	What not accessing this concession means	Are there any other eligibility criteria?	How do I access this concession?	When can I access this concession?
You can choose to claim an immediate deduction for prepaid expenses where the payment is for a period of service that is 12 months or less and ends in the next income year.	You will need to apportion the deduction for the expense over the income years it applies to.	No	You access this concession by claiming an immediate deduction for prepaid expenses in your tax return. You don't need to notify us of your decision to use this concession.	Tax returns for the 2007-08 income year onwards.

	For more information, refer to Immediate deductions for prepaid expenses.
	Small business entity concessions - home

Sections within Income tax concessions

• Simplified trading stock rules
• Simplified depreciation rules
• Immediate deduction for certain prepaid expenses
• Two-year amendment period