Uniform capital allowance system: low-value pools
From 1 July 2001, the uniform capital allowance (UCA) rules apply to most depreciating assets. Taxpayers calculate deductions for the decline in value of their depreciating assets using these rules.
The UCA system adopts most of the former rules for low-value pools. Under the UCA rules, the decline in value of most depreciating assets with a cost or opening adjustable value of less than $1,000 can be calculated through a low-value pool at a rate of 37.5%.
The rules also provide an immediate deduction for certain assets costing $300 or less.
If you are using the simplified depreciation rules, generally you will not use the UCA rules for low-value pools. Under the simplified depreciation rules you can claim an immediate deduction for most depreciating assets costing less than $20,000 and pool most other depreciating assets.
You can use the simplified depreciation rules if you are a small business entity (2007-08 and later income years).
You must use the simplified depreciation rules for income years where you were in the simplified tax system (2006-07 and earlier income years).
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