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  • Taxpayers, other than individuals and small business entities, 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, 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, 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: 30 May 2019QC 58636