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  • Chapter 4-Individual taxpayers incurring deductible non-business expenditure



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    What is non -business expenditure?

    Non-business expenditure is any expenditure you incur in gaining assessable income from activities that do not relate to the carrying on of a business. The most common forms of non-business expenditure are amounts incurred by individual taxpayers in gaining their assessable salary and wage income. Other examples include certain expenditure made in respect of a rental property or shares held purely as a passive investment.

    Example: Non-business expenditure

    Ian is employed as a bank manager and the primary source of his income is the salary received from his employer. Ian also owns a rental property from which he receives assessable income. Ian's rental property activities do not constitute the carrying on of a business. Prepaid expenditure incurred by Ian in respect of the rental property or for work related expenses will be subject to the prepayment rules that apply to deductible non-business expenditure incurred by an individual.

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    Last modified: 10 Dec 2019QC 27429