• Low-value pools

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    For depreciating assets in a low-value pool, you need to keep the following details - some details relate to the assets and some to the pool:

    • the start time of assets in the pool and the date you started holding them
    • the closing pool balance at the end of the previous income year
    • any second elements of cost incurred for the income year for assets in the pool at the end of the previous income year
    • the opening adjustable value of any low-value assets you have allocated to the pool for the income year
    • the first element of cost of any low-cost assets allocated to the pool for the income year
    • the second element of cost of low-cost assets and low value assets allocated to the pool for the income year
    • the taxable use percentage of each amount added to the pool for the income year
    • the termination value and taxable use percentage for any assets in the pool in respect of which a balancing adjustment event occurred during the income year and the date of the balancing adjustment event
    • the closing pool balance
    • the decline in value
    • any amount included in assessable income because the taxable use percentage of the termination value exceeds the closing pool balance, and
    • any recoupment of cost you have included in assessable income.

    Because a capital gain or capital loss may arise when a balancing adjustment event occurs in relation to a depreciating asset you expect to use for other than a taxable purpose or in relation to a depreciating asset you have allocated to a low- value pool and expect to use for other than a taxable purpose, you must keep the following information:

    • the first and second elements of cost
    • termination value, and
    • the taxable use percentage.
    Last modified: 31 Oct 2005QC 27521