Can I claim prepaid expenses early in Australia?

As a small business (sole trader with turnover < $50m), you can often claim an immediate deduction for prepaid expenses if the 'service period' is **12 months or less** and ends in the next financial year. Common examples include: - Paying for a full year of professional indemnity insurance in June. - Paying for a 12-month software subscription upfront. - Paying for a year of business rent in advance. This is a common year-end tax strategy to bring forward deductions and reduce your taxable income for the current year.

• Immediate deduction for service periods <= 12 months
• Useful for software, insurance, and rent
• Great strategy for reducing tax at the end of June
• Payment must actually be made before June 30
• Applies to small business entities