To qualify for deductions in the 2019 income tax year, taxpayers may bring forward upcoming expenses (ie incur the expenses before 30 June 2019) or small businesses and individual non-business taxpayers may prepay expenses up to 12 months ahead (ie pay tax-deductible expenses relating to the 2020 income year before 30 June 2019). This should only be done subject to available cash flow and where there is a commercial basis for the prepayment. 

Business expenses that may be prepaid include:

  • short-term consumables such as office supplies and stationery;
  • unpaid workers' compensation insurance premium instalments; and
  • superannuation guarantee payments (only due in July).
Also note that bonuses and directors' fees that are confirmed and committed to by 30 June (as evidenced in Board minutes) may be deductible in 2019, even if these payments are only made after 30 June 2019.

Expenses that individuals may prepay include:

  • investment property expenses such as insurance, rates, repairs and maintenance and strata fees;
  • subscriptions to professional journals and memberships to professional associations;
  • interest on investment loans (eg for share portfolios and investment properties); and
  • income protection insurance.