How does this apply to primary producers?
The UCA system adopts the specific deduction provisions in the former law for certain expenditure and depreciating assets of primary producers. You cannot deduct an amount under the general provisions of the UCA rules, including low-value pooling, if you can claim a deduction for that expenditure or assets under the specific primary producer provisions. On the other hand, the low-value pooling provisions are available for assets that you cannot deduct under the specific primary producer provisions.
Where you are using a low-value pool and need to separate your deductions into those relating to primary production activities and those relating to non-primary production activities, you must apportion your deduction for the low-value pool on a reasonable basis. In practice, one way to do this is to keep records as if the deductions to be separated, and the assets to which the deductions relate, were in a separate pool.
This document provides information on the low-value pool provisions under the capital allowance system. It includes information on which depreciating assets can and can't be allocated to a low-value pool, and how to work out a deduction for pooled assets.