Income Tax Assessment Act 1997
Your deduction for a *general small business pool for an income year is the amount worked out under subsection (2) (instead of an amount calculated under section 328-190 ) if that amount is less than $1,000 but more than zero.
See section 328-215 for the result when the amount is less than zero.
This threshold is $20,000, $25,000, $30,000 or $150,000 for income years ending on or after 12 May 2015 and on or before 31 December 2020: see subsection 328-180(6) of the Income Tax (Transitional Provisions) Act 1997 .
[ CCH Note: S 328-210(1) will be amended by No 92 of 2020, s 3 and Sch 7 item 21, by substituting note 2, effective 1 January 2021. Note 2 will read:
The amount is the sum of:
(a) the pool ' s *opening pool balance for the income year; and
(b) the *taxable purpose proportion of the *adjustable value of each *depreciating asset you started to use, or have *installed ready for use, for a *taxable purpose during the income year and that is allocated to the pool; and
(c) the taxable purpose proportion of any cost addition amounts (see subsection 328-190(3) ) for the income year for assets allocated to the pool;
less the sum of the taxable purpose proportion of the *termination values of depreciating assets allocated to the pool and for which a *balancing adjustment event occurred during the income year.
In that case, the * closing pool balance of the pool for that income year then becomes zero.
Amanda ' s Graphics is a small business entity for the 2014-15 income year and chooses to use this Subdivision for that year. The business has an opening pool balance of $8,500 for its general small business pool for that year.
During that year, Amanda acquired a new computer for $2,000. The taxable purpose proportion of its adjustable value is:
$2,000 × 80% business use estimate = $1,600
Amanda also sold her business car for $9,600 during that year. The car was used 100% in the business.
To work out whether she can deduct an amount under this section, Amanda uses this calculation:
$8,500 + $1,600 - $9,600 = $500
Because the result is less than $1,000, Amanda can deduct the $500 for the income year. The pool ' s closing balance for the year is zero.
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