Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-45
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RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS
Division 328
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Small business entities
If you are a *small business entity for an income year and you have chosen to use this Subdivision for that year, you deduct amounts for your * depreciating assets (except assets for which you have deducted or can deduct an amount under section 328-180 ) through a pool, which allows you to deduct amounts for them as if they were a single asset, thereby simplifying your calculations. You use one rate for the pool.
There is a general small business pool to which *depreciating assets are allocated.
A * depreciating asset:
(a) that you * hold just before, and at the start of, the first income year for which you are, or last were, a *small business entity; and
(b) for which you calculate your deductions under this Subdivision instead of under Division 40 ; and
(c) that has not previously been allocated to your * general small business pool; and
(d) that you have started to use, or have * installed ready for use, for a * taxable purpose;
A * depreciating asset that you start to use, or have * installed ready for use, for a * taxable purpose during an income year for which you are a *small business entity and you choose to use this Subdivision is allocated to the *general small business pool at the end of that year.
You can choose not to have a * depreciating asset allocated to the *general small business pool if you started to use it, or have it * installed ready for use, for a * taxable purpose before 1 July 2001.
You must make that choice for the first income year for which you are a *small business entity and you choose to use this Subdivision. Once you have made the choice for an asset, you cannot change it.
Once a * depreciating asset is allocated to your * general small business pool, it is not re-allocated, even if you are not a *small business entity for a later income year or you do not choose to use this Subdivision for that later year.
Subdivision 328-D
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Capital allowances for small business entities
Operative provisions
SECTION 328-185
Pooling
328-185(1)
If you are a *small business entity for an income year and you have chosen to use this Subdivision for that year, you deduct amounts for your * depreciating assets (except assets for which you have deducted or can deduct an amount under section 328-180 ) through a pool, which allows you to deduct amounts for them as if they were a single asset, thereby simplifying your calculations. You use one rate for the pool.
328-185(2)
There is a general small business pool to which *depreciating assets are allocated.
Allocating assets to a pool
328-185(3)
A * depreciating asset:
(a) that you * hold just before, and at the start of, the first income year for which you are, or last were, a *small business entity; and
(b) for which you calculate your deductions under this Subdivision instead of under Division 40 ; and
(c) that has not previously been allocated to your * general small business pool; and
(d) that you have started to use, or have * installed ready for use, for a * taxable purpose;
is automatically allocated to your general small business pool.
328-185(4)
A * depreciating asset that you start to use, or have * installed ready for use, for a * taxable purpose during an income year for which you are a *small business entity and you choose to use this Subdivision is allocated to the *general small business pool at the end of that year.
Note:
The allocation happens even if you no longer hold the asset at the end of that income year.
Exception for assets used or installed before 1 July 2001
328-185(5)
You can choose not to have a * depreciating asset allocated to the *general small business pool if you started to use it, or have it * installed ready for use, for a * taxable purpose before 1 July 2001.
Note:
If you make this choice, you would continue to deduct amounts for the asset under Division 40 .
328-185(6)
You must make that choice for the first income year for which you are a *small business entity and you choose to use this Subdivision. Once you have made the choice for an asset, you cannot change it.
No re-allocation
328-185(7)
Once a * depreciating asset is allocated to your * general small business pool, it is not re-allocated, even if you are not a *small business entity for a later income year or you do not choose to use this Subdivision for that later year.
Note:
If you chose to use this Subdivision for an income year, you continue to use it for your general small business pool for a later income year even if you are not a small business entity, or do not choose to use this Subdivision, for the later year: see section 328-220 .
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