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  • Taxpayers, other than individuals, small business entities and entities that would be small business entities if the aggregated turnover threshold was $50 million, incurring deductible non-business expenditure

    If you are an individual taxpayer, see Individual taxpayers incurring deductible non-business expenditure.

    If you are a small business entity or would be a small business entity if the aggregated turnover threshold was $50 million, see Small business entities.

    Non-business expenditure is any expense you incur in an activity that will earn assessable income that does not amount to a business. For an entity carrying on a business, there may be occasions when you incur deductible non-business expenditure. For example, if you incur expenditure for a rental property held as a passive investment.

    Summary of rules

    • If you are not an individual or a small business entity or an entity that would be a small business entity if the aggregated turnover threshold was $50 million, your deduction for prepaid non-business expenditure is apportioned over  
      • the eligible service period, or
      • 10 years, whichever is less.
       
    • Prepaid non-business expenditure that is subject to the tax shelter rules is apportioned over  
      • the eligible service period, or
      • 10 years, whichever is less.
       

    See also:

    Last modified: 27 May 2021QC 64888