• How do you work out the closing pool balance?

    The closing balance of a low-value pool is the sum of:

    • the closing pool balance for the previous income year

    plus

    • the taxable use percentage of the costs of any low-cost assets allocated to the pool for the year

    plus

    • the taxable use percentage of the opening adjustable values of low-value assets allocated to the pool for the year

    plus

    • the taxable use percentage of the cost of any improvements made to the assets in the pool during the year

    less

    • the deduction for the decline in value of the depreciating assets in the pool for the year

    less

    • the taxable use percentage of the termination value of any pooled assets that you disposed of during the year.

    Example 4

    Assuming that John made no additional acquisitions to or disposals from his low-value pool, the closing balance of his pool for 2001-02 and 2002-03 is:

    Closing pool balance

    Item

    Amount

    2001-02

    Closing pool balance for 2000-01

     

    $5,000

    Plus taxable use percentage of low-cost assets allocated for the year (see example 1)

    New printer

    $594

    Less decline in value of assets in pool for the year (see example 2)

     

    -$1,986

    Closing pool balance for 2001-02

     

    $3,608

     

     

     

    2002-03

    Closing pool balance for 2001-02

     

    $3,608

    Less decline in value of assets in pool for the year

    37.5% x $3,608

    - $1,353

    Less taxable use percentage of termination value of pooled assets that were disposed of during the year (see example 3)

     

    - $300

    Closing pool balance for 2002-03

     

    $1,955

     

    End of example
      Last modified: 15 Apr 2016QC 16455