Which period can be included
The deemed commencement date is the first day of the accounting year in which the business earns its first business receipt. Qualifying revenue costs in that accounting year can be deducted, and the enhancement from YA 2012 also covers the immediately preceding accounting year by treating those costs as incurred on the deemed date. Where the earlier accounting period exceeds 12 months, only the immediately preceding 12-month costs qualify under the stated rule. This does not convert capital establishment expenditure into ordinary deductible costs.
Claims and exceptions
The current-year tax computation identifies and describes preceding-year amounts; relevant invoices are retained for requests rather than automatically submitted. Excess allowable expenditure can become a trade loss subject to the normal utilisation conditions. A business may substantiate an earlier actual commencement date instead. The section 14R concession does not apply to income governed by section 10D investment-business rules. Track the first receipt, accounting periods and cost nature separately before consolidating pre-revenue amounts into the return.
Official source
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