Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances  

Subdivision 40-E - Low-value and software development pools  

Operative provisions

SECTION 40-445   Balancing adjustment events  

40-445(1)    
If a ^* balancing adjustment event happens to a ^* depreciating asset in a low-value pool in an income year, the ^* closing pool balance for that year is reduced (but not below zero) by the taxable use percentage of the asset's ^* termination value.

40-445(2)    
If the sum of the ^* termination values, or the part of it, applicable under subsection (1) exceeds the ^* closing pool balance of the pool for that year, the excess is included in your assessable income.