The 13 month prepayment measure requires your deduction for the prepayment to be apportioned where all of the following apply:
- you were not a small business taxpayer
- the prepayment was made after 11.45am (by legal time in the ACT) on 21 September 1999-and was not made under a contract entered into before that time (that you cannot avoid by your own actions)
- the prepayment was for things to be done within 13 months of the expenditure being incurred and would not be wholly done in the income year in which the amount was incurred (the expenditure year)
- the prepayment was $1,000 or more, and was not an amount of salary or wages or an amount required to be incurred by a law or a court order
- the prepayment was made in carrying on a business and
- the prepayment was not apportionable under the tax shelter rules-see part F.
Completing label A item P10 on your schedule
Did you make a prepayment of an expense in the 1999-2000 or 2000-01 income year where all of the above applied?
NO
Write N at A item P10 on your schedule. Do not complete B and C. However, you need to read part F to find out whether the tax shelter rules apply to your prepayment.
YES
Write Y at A item P10 on your schedule. You must complete B and C in relation to the affected prepayments. Go to part B.