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Prepaid expenses

Last updated 28 August 2019

If you prepay a rental property expense, such as insurance or interest on money borrowed, that covers a period of 12 months or less and the period ends on or before 30 June 2020, you can claim an immediate deduction. If the expense covers a period that extends beyond 30 June 2020, your deduction might have to be spread over two or more years under the prepayment rules if the expense is $1,000 or more.

For more information, see Deductions for prepaid expenses.