Document ID: chunk:federal_register_of_legislation:C2004C01190:clause:2_216:p5
Version: federal_register_of_legislation:C2004C01190
Segment Type: clause
Provision Reference: sch 2 cl 216 (pt 5/8)
Character Range: 144033–146637

if:
 (a) the pooled expenditure relates directly or indirectly to a *creditable acquisition or *creditable importation; and
 (b) the entity is or becomes entitled to an *input tax credit in an income year (the credit year) for the acquisition or importation and the credit year occurs after the income year in which the acquisition or importation occurred.

 (2A) There is a reduction under subsection (4) if:
 (a) the pooled expenditure relates directly or indirectly to a *creditable acquisition or *creditable importation; and
 (b) the entity is or becomes entitled to an *input tax credit in an income year (the credit year) for the acquisition or importation.

Reduced cost of assets allocated to a pool

 (2B) A *depreciating asset's *cost is reduced if:
 (a) an entity's acquisition or importation of the asset constitutes a *creditable acquisition or *creditable importation; and
 (b) the entity is or becomes entitled to an *input tax credit for the acquisition or importation and the income year in which the acquisition or importation occurred is the same as the one in which the input tax credit arose; and
 (c) the asset is allocated to a low‑value pool or a pool under Division 328 for or in that year.
The reduction is the amount of the input tax credit.

Low‑value pools

 (3) For a low‑value pool, the *closing pool balance of the pool for:
 (a) if the credit year is later than the first income year for which *depreciating assets were allocated to the pool—the income year before the credit year; or
 (b) if the credit year is the first income year for which *depreciating assets were allocated to the pool—the credit year;
is reduced by an amount equal to the input tax credit.

Software development pools and project pools

 (4) For a software development pool or a project pool, the expenditure in the pool for the credit year, or the *pool value for the credit year, is reduced by an amount equal to the *input tax credit.

STS pools

 (5) For a pool under Division 328, the *opening pool balance of the pool for the credit year is reduced by an amount equal to the input tax credit.

No reduction if market value

 (5A) However, there is no reduction to the *cost of a *depreciating asset if its cost is modified under Division 40 to be its *market value.

Second element of cost

 (6) There is a reduction under subsection (7) if:
 (a) the entity incurs expenditure 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