What is a pre-RBT obligation?

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A pre-RBT obligation is any contractual obligation that:

• exists under an agreement at or before 11.45am [by legal time in the Australian Capital Territory (ACT)] on 21 September 1999-the date of the Government's release of the Review of Business Taxation (RBT)
• requires you to make a prepayment in return for something to be done under the agreement
• cannot be avoided by your own actions.

The rules for deducting prepaid expenses incurred under a pre-RBT obligation are the same as those explained for taxpayers who are in the Simplified Tax System (STS), see chapter 5.