Document ID: chunk:federal_register_of_legislation:C2010C00603:clause:1_11:p2
Version: federal_register_of_legislation:C2010C00603
Segment Type: clause
Provision Reference: sch 1 cl 11 (pt 2/3)
Character Range: 25992–28681

rather than individually for each such asset.

Time of allocation of assets to head company's low‑value pool

 (3) Sections 40‑430, 40‑435, 40‑440 and 40‑445 operate as if the *head company of the *consolidated group allocated the previous pool assets to a low‑value pool for the income year that includes the joining time. Section 701‑5 has effect subject to this subsection.

Note 1: Under section 40‑435, the head company must make a reasonable estimate of the taxable use percentage for each asset.

Note 2: This subsection affects the percentages and amounts to be taken into account for working out under section 40‑440 the decline in value of assets in the pool and the closing pool balance.

Allocating other low‑cost assets to head company's low‑value pool

 (4) Subsection 40‑430(1) operates as if the previous pool assets were *low‑cost assets.

Note: This has the effect that the head company must allocate to the low‑value pool each low‑cost asset it starts to hold in the income year that includes the joining time or a later income year, whether or not the head company starts to hold the asset because of section 701‑1.

If joining time was in first day of joining entity's income year

 (5) If the joining time was in the first day of the joining entity's income year, section 40‑440 operates as if:
 (a) all the previous pool assets were *low‑value assets; and
 (b) the sum of the previous pool assets' *opening adjustable values for the income year that includes the joining time equalled the *tax cost setting amount for the hypothetical asset worked out on the basis described in subsections (7), (8) and (9) of this section.

If joining time was not in first day of joining entity's income year

 (6) If the joining time was not in the first day of the joining entity's income year, section 40‑440 operates as if:
 (a) all the previous pool assets were *low‑cost assets; and
 (b) the sum of the previous pool assets' *costs equalled the total of:
 (i) the *tax cost setting amount for the hypothetical asset worked out on the basis described in subsections (7), (8) and (9) of this section; and
 (ii) the expenditure (if any) that was incurred after the joining time (but in the income year that includes that time) and included in the second element of the costs (ignoring this paragraph) of the previous pool assets.

Tax cost is set for assets collectively not individually

 (7) Sections 701‑10 and 701‑60 and Division 705 operate as if all the previous pool assets formed a single *depreciating asset (the hypothetical asset), and were not separate assets.

Modified operation of Division 705 for hypothetical asset

 (8) Sections 705‑40 and 705‑57 operate