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  • Working out your deduction and the pool closing balance

    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
    Worksheet 1 - Working out the low-value pool deduction

    Row

    Low-value pool deduction

    Amount

    a

    The closing balance of the pool for 2016–17. If you did not have a low-value pool in 2016–17, show 0.

    $               

    b

    For each low-value asset allocated to the pool in 2017–18, multiply its opening adjustable value (on 1 July 2017) by your taxable use percentage for the asset. Add up the amounts and show the total.

    $

    c

    Add rows a and b.

    $

    d

    Multiply row c by 0.375.

    $

    e

    For each low-cost asset allocated to the pool in 2017–18, multiply its cost (including additional capital costs incurred in 2017–18, such as improvements) by your taxable use percentage for the asset. Add up the amounts and show the total.

    $

    f

    For each

    • asset allocated to the pool in a prior income year, and
    • low-value asset allocated to the pool in 2017–18

    for which you incurred additional capital costs (such as improvements) in 2017–18, multiply the costs by your taxable use percentage for the asset. Add up the amounts and show the total.

    $

    g

    Add rows e and f.

    $

    h

    Multiply row g by 0.1875.

    $

    i

    Add rows d and h.

    $

    The amount at row i is the total low-value pool deduction.

    Worksheet 2 - Working out the closing pool balance

    Row

    Closing balance for 2017–18

    Amount

    j

    Transfer amount from row a in worksheet 1.

    $               

    k

    Transfer amount from row b in worksheet 1.

    $

    l

    Transfer amount from row e in worksheet 1.

    $

    m

    Transfer amount from row f in worksheet 1.

    $

    n

    Add rows j, k, l and m.

    $

    o

    Transfer amount from row i in worksheet 1.

    $

    p

    Take row o away from row n.

    $

    q

    For each pool asset subject to a balancing adjustment event in 2017–18, multiply its termination value by your taxable use percentage for the asset. Add up the amounts and show the total.

    $

    r

    Take row q away from row p.

    This is your closing pool balance for 2017–18.

    $

    Note:

    Some common events, such as the sale or disposal of an asset in the low-value pool, or the asset's loss or destruction, result in a 'balancing adjustment event'.

    If there has been a balancing adjustment event for an asset in the pool, you must reduce the closing pool balance. To do this, you multiply the asset's termination value (generally any proceeds, including any insurance payout, from the event) by your taxable use percentage for the asset. Your closing pool balance is reduced by the amount that results from this calculation. There is space for you to include this amount in Worksheet 2. If this amount is more than the closing pool balance, you reduce the closing pool balance to nil and include the excess amount at Any other income in the Other income section.

      Last modified: 28 Jun 2018QC 55607