Leading up to 30 June, Small Business Entities (SBE with a turnover of less than $10million including affiliates and connected entities) can claim an immediate deduction for certain prepaid business expenses where the payment is for a period of 12 months or less and ends in the following income year that the payment was made.
The prepaid expenditure concession provides SBEs with cash-flow relief by enabling them to bring forward deductions that would otherwise be apportioned over two income years.
Examples of business expenditure items that you may wish to prepay over the coming days before 1 July include:
- Repairs to business assets
- Business trips
- Deductible interest
- Seminars and conference bookings
- Contract payments
- Deductible car registration fees
- Leases, and
- Telephone and internet services.