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 40-450   Software development pools  

40-450(1)  
You may choose to allocate amounts of expenditure you incur on * in-house software in an income year to a software development pool if it is expenditure on developing, or having another entity develop, computer software.

Note:

You cannot allocate expenditure on in-house software to a software development pool if it is expenditure on acquiring computer software or a right to use computer software.

40-450(2)  
Once you choose to create a software development pool for an income year, any amounts of the kind referred to in subsection (1) you incur after the pool is created (whether in that income year or a later one) must be allocated to a software development pool.

40-450(3)  
However, an amount of expenditure on * in-house software can only be allocated to a software development pool if you intend to use the software solely for a * taxable purpose.

40-450(4)  
You must create a separate software development pool for each income year for which you incur amounts of the kind referred to in subsection (1).


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