Low-value pools

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 a non-taxable purpose or in relation to a depreciating asset you have allocated to a low-value pool and expect to use for a non-taxable purpose, you must keep the following information:

• the first and second elements of cost
• termination value, and
• the taxable use percentage.