Document ID: chunk:federal_register_of_legislation:C2004C01190:clause:2_216:p6
Version: federal_register_of_legislation:C2004C01190
Segment Type: clause
Provision Reference: sch 2 cl 216 (pt 6/8)
Character Range: 146430–149024

in an income year (also the credit year) that is included in the second element of the *cost of a *depreciating asset allocated to a low‑value pool or a pool under Division 328 for or in the credit year; and
 (b) the entity is or becomes entitled, after the credit year, to an *input tax credit for the expenditure.

 (7) An amount equal to the amount of the *input tax credit is applied in reduction of:
 (a) for a low‑value pool:
 (i) if the credit year is later than the first income year for which *depreciating assets were allocated to the pool—the *closing pool balance of the pool for the income year before the credit year; or
 (ii) if the credit year is the first income year for which *depreciating assets were allocated to the pool—the *closing pool balance of the pool for the credit year; or
 (b) for a pool under Division 328—the *opening pool balance of the pool for the credit year.

 (7A) There is a reduction to an amount of expenditure included in the second element of the *cost of a *depreciating asset if:
 (a) the asset is allocated to a low‑value pool or a pool under Division 328 for or in the income year in which the expenditure was incurred; and
 (b) the entity that incurred the expenditure is or becomes entitled to an *input tax credit for the expenditure; and
 (c) the entitlement arises in the income year in which the expenditure was incurred.
The reduction is the amount of the input tax credit.

Increasing adjustments

 (8) There is an increase under subsection (9) if the entity has an *increasing adjustment (except one that arises under Division 129 or 132 of the *GST Act) in an income year (the adjustment year) that relates directly or indirectly to a *creditable acquisition or *creditable importation to which the pooled expenditure relates.

Note: For an increasing adjustment that arises under Division 129 or 132 of the GST Act, see section 27‑92.

 (9) An amount equal to the amount of that *increasing adjustment is added to:
 (a) for a low‑value pool:
 (i) if the adjustment year is later than the first income year for which *depreciating assets were allocated to the pool—the *closing pool balance of the pool for the income year before the adjustment year; or
 (ii) if the adjustment year is the first income year for which *depreciating assets were allocated to the pool—the *closing pool balance of the pool for the adjustment year; or
 (b) for a pool under Division 328—the *opening pool balance of the pool for the adjustment year; or
 (c) for *in‑house software—the amount of expenditure allocated to the software development pool for