I run a small business and in June pre-paid 12 months rent on the premises that I operate my business from.� Can I claim the whole amount on my tax return even though most of the payment is for next year?

If your turnover is less than $2 million you will qualify as a Small Business Entity and will be able to claim certain eligible pre-paid expenses in the year they were paid.

Some examples of prepaid expenses that can be claimed in the year they are paid are rent, insurance, and subscriptions to professional associations. Eligible expenses will be payments that are made for periods of 12 months or less and that the period of service ends in the next income year. Your pre-paid rent qualifies because the period it covers does not exceed 12 months and that period will end before the end of the next income year. The whole amount will be claimable on your tax return this year.