Show at B item P10 on your schedule, the total of your later year amounts for prepaid expenditure that was subject to the measure in 1999-2000.
Note: Prepaid expenses incurred before 11.45am (by legal time in the ACT) on 21 September 1999 or under a tax shelter arrangement after 1.00pm (by legal time in the ACT) on 11 November 1999 must not be included in this amount. This is explained in part F.
Work out your amount to show at B on your schedule as follows:
Step 1
Initial year prepayment (refer to part A) × (number of days of eligible service period in the 1999-2000 income year ÷ total number of days of eligible service period)
(The initial year prepayment is the prepayment made in the 1999-2000 income year that is subject to the measure. The eligible service period is the period during which the thing is to be done under the agreement.)
Step 2
Deduct the amount at step 1 from your initial year prepayment.
Step 3
Write this amount at B on your schedule.
Under the transitional rules, 80% of the amount at B is deductible in the 1999-2000 income year and the remaining 20% is deductible in the 2000-01 income year. Ensure that you have shown your 20% deduction as a subtraction at H Expense reconciliation adjustments item P8 on your schedule if the prepayment relates to your business income at P8 and you have not included the amount at any other label.