Income Tax Assessment Act 1997



Division 328 - Small business entities  

Subdivision 328-D - Capital allowances for small business entities  

Special rules about roll-overs

SECTION 328-247   Pool deductions  


The amount that can be deducted for the transferor ' s * general small business pool for the income year (the BAE year ) in which the * balancing adjustment events occurred under subsection 328-190(1) or section 328-210 for the BAE year is split equally between:

(a) the transferor and the transferee; or

(b) if there are 2 or more occurrences of balancing adjustment events for relevant entities for the BAE year and a roll-over is chosen for each occurrence - the entities concerned.


John and Dave operate a dry cleaning business in partnership (the transferor). The transferor is a small business entity for the relevant income year and has chosen to use this Subdivision for that year. On the 90th day of an income year, Jonathan joins the partnership. The new partnership (the transferee) is a small business entity for the income year and chooses to use this Subdivision for that year. Had there been no partnership change, a deduction of $6,600 would have been available for the transferor ' s general small business pool. The transferor and transferee jointly choose the roll-over.

The deduction available to the transferor and the transferee for the pool under section 328-210 is $3,300 each.


The transferor cannot deduct any amount for the transferor ' s * general small business pool for an income year after the BAE year.


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