Income Tax Assessment Act 1997
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.
There is a general small business pool to which *depreciating assets are allocated.
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.
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.
The allocation happens even if you no longer hold the asset at the end of that income year.
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.
If you make this choice, you would continue to deduct amounts for the asset under Division 40 .
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.
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.
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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