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Non-business expenditure is any expenditure you incur in gaining assessable income from activities that do not relate to the carrying on of a business. The most common forms of non-business expenditure are amounts incurred by individual taxpayers in gaining their assessable salary and wage income. Other examples include certain expenditure made in respect of a rental property or shares held purely as a passive investment.
Ian is employed as a bank manager and the primary source of his income is the salary received from his employer. Ian also owns a rental property from which he receives assessable income. Ian's rental property activities do not constitute the carrying on of a business. Prepaid expenditure incurred by Ian in respect of the rental property or for work related expenses will be subject to the prepayment rules that apply to deductible non-business expenditure incurred by an individual.
Last modified: 18 Jun 2002QC 27429