Rewards4Earth MAAS has the potential to qualify as a deduction for prepaid expense under the ’12-month rule’. If you are a small business entity or would be a small business entity if the aggregated turnover threshold was $50 million, or an individual incurring deductible non-business expenditure you can claim an immediate deduction. You can claim the deduction under the 12-month rule for prepaid expenditure if:
• the payment is incurred for an eligible service period not exceeding 12 months
• the eligible service period ends in the next income year.
If the 12-month rule does not apply, your deduction for prepaid expenditure is apportioned over the eligible service period or 10 years, whichever is less.
For more information on deductions for prepaid expenses visit the Australian Tax Office website.