Question is about Australian Taxation

In July 2022 Waleed signed a lease and licence agreement for a fast food restaurant. The agreement required a payment for the lease and licence which was defined as a base rent amount of $80,000 and an additional amount payable each year of 11% of gross sales. The agreement included an option to pay a fixed upfront payment. Paying upfront would reduce the specified percentage from 11% to 8% of gross sales. If the upfront payment was made the amount would not be refundable. Waleed decided to make the upfront payment of $600,000 on 1 August 2022. The payment was described in the letter of offer, agreement and tax invoice as prepaid rent. Required: Discuss whether the expenditure incurred by Waleed would be allowable as a deduction during the year ended 30 June 2023 under s8-1 ITAA 1997. Support your discussion with reference to legislation, case law and taxation rulings.