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  • Deductions

    Attention

    Warning:

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

    End of attention

    Remember, you cannot claim a deduction for amounts already claimed by the partnership, or for expenses incurred in deriving exempt income or non-assessable non-exempt income.

    If you made a prepayment of $1,000 or more for something to be done (in whole or in part) in a future income year, the amount you can deduct may be affected by the rules relating to prepayments. For more information on prepayments, see Deductions for prepaid expenses.

    If you have incurred debt deductions, such as interest and borrowing costs, in deriving assessable income from a partnership, of more than $2,000,000 (alone or combined with those of your associate entities) for 2017–18, the amount that you can deduct may be affected by the thin capitalisation rules. For more information, see Thin capitalisation.

    Primary production deductions

    Landcare operations and business deduction for decline in value of water facility, fencing asset and fodder storage asset

    If you were a partner in a partnership that incurred eligible expenditure on landcare operations, water facilities, fencing assets or fodder storage assets, the partnership cannot claim the expenditure. Costs incurred by the partnership are allocated to each partner who can then claim the deduction.

    Enter your share of the total of any such expenditure that relates to primary production income or loss from partnerships that you can deduct this year at Landcare operations and business deduction for decline in value of water facility, fencing asset and fodder storage asset.

    For more information on deductions for expenditure on landcare operations, water facilities, fencing assets and fodder storage assets, see the Guide to depreciating assets.

    Other deductions

    Enter the total of any other deductions (including non-commercial business losses deferred from a prior year) you can claim in relation to your share of primary production income or loss from a partnership at Other deductions.

    If you were a partner in a partnership and you can claim a deduction in relation to your share of eligible expenditure incurred by the partnership on horticultural plants, grapevines, electricity connections or phone lines, include any such deduction that relates to primary production income or loss from a partnership at Other deductions. For information about deductions for expenditure on horticultural plants, grapevines, electricity connections and phone lines, see Guide to depreciating assets.

    Include a non-commercial business loss deferred from a prior year business activity only if it relates to one of your current year partnership business activities which is the same as, or similar to, the prior year business activity which generated the loss.

    The deferred non-commercial business loss deduction you can claim in 2017–18 may be reduced if you earned net exempt income in 2017–18. For more information see How to offset your losses.

    If you became bankrupt (or received a relief from debt) the deferred losses will no longer be available. The loss cannot be deducted in the current year or any future year.

    For more information about how exempt income and bankruptcy affect deferred non-commercial business losses, phone 13 28 66.

    Non-primary production deductions

    Landcare operations expenses

    If a partnership incurs eligible expenditure on landcare operations, the partnership cannot claim the expenditure. Costs incurred by the partnership are allocated to each partner who can then claim the deduction. Enter your share of the total of any such expenditure that relates to non-primary production income or loss from partnerships that you can deduct this year at Landcare operations expenses.

    For more information on deductions for expenditure on landcare operations, see Guide to depreciating assets.

    Other deductions

    Enter the total of other deductions (including non-commercial business losses deferred from a prior year) you can claim in relation to your share of non-primary production income or loss from a partnership at Other deductions.

    If you were a partner in a partnership and you can claim a deduction in relation to your share of eligible expenditure incurred by the partnership on electricity connections, include any such deduction that relates to non-primary production income or loss from partnerships at Other deductions. For information about deductions for expenditure on electricity connections, see the Guide to depreciating assets.

    Include non-commercial business losses deferred from a prior year only if they relate to a partnership activity which is the same as, or similar to, your current year partnership activity.

    The deferred non-commercial business loss deduction you can claim in 2017–18 may be reduced if you earned net exempt income in 2017–18. For more information see How to offset your losses.

    If you became bankrupt (or received a relief from debt) the deferred losses will no longer be available. The loss cannot be deducted in the current year or any future year.

    For more information about how exempt income and bankruptcy affect deferred non-commercial business losses, phone 13 28 66.

      Last modified: 28 Jun 2018QC 55612