INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 328 - Small business entities  

Subdivision 328-D - 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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