Deductions for prepaid expenses 2025

A guide to help you work out deductions you can claim for expenses you prepay for a later income year.

Published 28 May 2025

General information about prepaid expenses

What prepaid expenses are and the prepayment rules.

What are the general deduction and R&D provisions.

About tax shelter arrangements, expenditure to exclude from these rules and how to calculate a deduction.

What is non-business expenditure, deductibility rules and calculating a deduction if the 12-month rule is satisfied.

What is small business entities, a summary of rules and calculating a deduction if the 12-month rule is satisfied.

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