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End of attention
It has been the longstanding practice to treat the initial purchase of certain assets as not depreciable but to allow claims for an immediate deduction for the cost of their replacement. The practice principally related to low cost items that had very long or indeterminate lives, were difficult to keep track of, and were subject to frequent replacement through loss or breakage-for example, crockery, bedding, linen.
Low-value pooling was introduced on 1 July 2000 and the $300 immediate write-off for depreciating assets used predominantly in deriving non-business income (including rental income) has been retained with some changes for assets acquired after 1 July 2001. The replacement basis for deductions is no longer available for assets you first use (or have installed ready for use) to produce income after 30 June 2000.
Last modified: 18 Jul 2008QC 16578