This is where a business taxpayer brings forward the expenditure on regular, on-going deductible items. However, business taxpayers are generally entitled to deductions on an ‘incurred basis’.
Therefore, there is generally no requirement for the expense to be paid by 30 June 2015. As long as the expense has genuinely been incurred, it will generally be deductible.
Checklist
The following may act as a checklist of possible accelerated expenditure:
Depreciating assets costing $100 or less can be written off in the year of purchase.
Depreciating assets costing less than $1,000 can be allocated to a low value pool and depreciated at 18.75% (which is half of the full rate of 37.5%) in their first year regardless of the date of purchase.
Repairs – repairs to office premises, equipment, cars or other business items.
Consumables/spare parts.
Client gifts.
Donations.
Advertising.
Fringe benefits – any benefits to be provided, such as property benefits, could be purchased and provided prior to 1 July 2015.
Superannuation – contributions to a complying superannuation fund, to the extent contributions are actually made (i.e., they cannot be accrued but must be paid by 30 June).
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