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Edited version of your private ruling
Authorisation Number: 1012565833950
Ruling
Subject: Depreciation
Question
Can assets (that were in the long life pool) be included as depreciable assets in the general small business pool under Subdivision 328 D of the Income Tax Assessment Act (ITAA 1997) in the 2012-13 financial year?
Answer
Yes.
This ruling applies for the following period
Year ended 30 June 2013
The scheme commences on:
1 July 2012
Relevant facts and circumstances
You conducted a business as a primary producer.
You are a small business with a turnover of less than $2 million.
You have a closing balance in the long life small business pool as at 30 June 2012.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 328-D
Income Tax (Transitional Provisions) Act 1997 subsection 328-200(2)
Reasons for decision
From the 2012-13 income year amendments to the legislation in Subdivision 328-D allows small business entities to allocate depreciating assets costing $6,500 or more to the general small business pool and there is no longer a long life small business pool. There are transitional provisions in subsection 328-200(2) of the Income Tax (Transitional Provisions) Act 1997, that allow for depreciating assets that had been allocated to your long life small business pool, to be treated as being allocated to your general small business pool.
The closing pool balance of the long life pool for the 2011-12 income year (after taking into account any necessary adjustments) can be included in the opening balance of the general small business pool in the 2012-13 income year.
Your plant has been included in the long life small business pool and that plant would now be eligible to be allocated to the general small business pool.
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