What is excluded expenditure?



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

End of attention

Certain types of expenditure are excluded from the prepayment rules. These are:

  • amounts of less than $1,000
  • amounts required to be paid by a Commonwealth, State or Territory law or by a court order
  • payments of salary or wages (under a contract of service)
  • amounts that are capital, private or domestic in nature.


Amount required to be paid under a State law

John operates a cartage business and paid $1,200 on 31 December 2001 to register his truck for 12 months from 1 January 2002 to 31 December 2002. The truck is used exclusively for business purposes. Although the registration fee is in excess of $1,000 and it covers a period spreading across more than one income year, it is excluded expenditure. This is because the registration fee is required to be paid under a State or Territory law. The prepayment rules do not apply to this type of expenditure and the fee is deductible in the year it is paid.

Last modified: 18 Jun 2002QC 27429