Question: Minecorp Pty Ltd is a medium sized engineering company with an average annual turnover of $5 million. On 1 June 2021 they pay a $120,000

Minecorp Pty Ltd is a medium sized engineering company with an average annual turnover of $5 million. On 1 June 2021 they pay a $120,000 upfront fee to Fixit Pty Ltd for a 12 month contract to provide monthly maintenance to Minecorps machines. Which of the following amounts would be deductible in respect of the year ended 30 June 2021?

		No amount is deductible as the payment is acquiring a long-term capital advantage.
		$120,000.
		$ 60,000.
		$ 12,000.
		$ 10,000.

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