Division 328 - Small business entities  

Subdivision 328-D - Capital allowances for small business entities  

Guide to Subdivision 328-D

SECTION 328-170   What this Subdivision is about  

If you are a small business entity, you can choose to deduct amounts for most of your depreciating assets on a diminishing value basis using a pool that is treated as a single depreciating asset.

Broadly, the pool is made up of the costs of the depreciating assets that are allocated to it or, in some cases, a proportion of those costs.

The pool rate is 30%.

There is a deduction for assets whose cost is less than $1,000 in the income year in which you start to use the asset or have it installed ready for use.

This Subdivision sets out how to calculate the pool deductions, and also sets out the consequences of:

  • (a) disposal of depreciating assets; and
  • (b) not choosing to use this Subdivision for an income year after having chosen to do so for an earlier income year; and
  • (c) changing the business use of depreciating assets.

    Operative provisions
    328-175 Calculations for depreciating assets
    328-180 Assets costing less than $1,000
    328-185 Pooling
    328-190 Calculation
    328-195 Opening pool balance
    328-200 Closing pool balance
    328-205 Estimate of taxable use
    328-210 Low pool value
    328-215 Disposal etc. of depreciating assets
    328-220 What happens if you are not a small business entity or do not choose to use this Subdivision for an income year
    328-225 Change in business use
    328-230 Estimate where deduction denied
    328-235 Interaction with Divisions 85 and 86
    328-237 (Repealed by No 96 of 2014)
    328-240 (Repealed by No 41 of 2005)
    Special rules about roll-overs
    328-243 Roll-over relief
    328-245 Consequences of roll-over
    328-247 Pool deductions
    328-250 Deductions for assets first used in BAE year
    328-253 Deductions for cost addition amounts
    328-255 Closing pool balance etc. below zero
    328-257 Taxable use


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