Document ID: chunk:federal_register_of_legislation:C2004A00846:clause:1_1:p7
Version: federal_register_of_legislation:C2004A00846
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 7/21)
Character Range: 16556–19037

a *long life STS pool to which it would otherwise have been allocated if you started to use it, or have it *installed ready for use, for a *taxable purpose before 1 July 2001.

Note: If you make this choice, you would continue to deduct amounts for the asset under Division 40.

 (6) You must make that choice for the first income year for which you are an *STS taxpayer. Once you have made the choice for an asset, you cannot change it.

No re‑allocation

 (7) Once a *depreciating asset is allocated to your *general STS pool or *long life STS pool, it is not re‑allocated, even if you stop being an *STS taxpayer and again become one.

Note: You continue to use this Subdivision for your STS pools after you leave the STS: see section 328‑220.

Example: Greg chooses to leave the STS for the 2002‑03 income year. At that time, his long life STS pool contains one depreciating asset that has an effective life of 28 years.

 When Greg chooses to re‑enter the STS for the 2008‑09 income year, he still holds that asset. The asset has remained in the pool since Greg left the STS and is not re‑allocated when he re‑enters, even though its remaining effective life is now 22 years.

328‑190  Calculation

 (1) You calculate your deduction for each pool for an income year using this formula:
where:

pool rate is:
 (a) 30% for a *general STS pool; or
 (b) 5% for a *long life STS pool.

Note: You use section 328‑210 instead if the pool has a low pool value.

 (2) Your deduction for each *depreciating asset that you start to use, or have *installed ready for use, for a *taxable purpose during an income year while you are an *STS taxpayer is:
 (a) 15% of the *taxable purpose proportion of its *adjustable value if its *effective life is less than 25 years; or
 (b) 2.5% of the taxable purpose proportion of its adjustable value if its effective life is 25 years or more.

 (3) You can also deduct for an income year for which you are an *STS taxpayer the amount worked out under subsection (4) for an amount (the cost addition amount) included in the second element of the *cost of a *depreciating asset for that year if you started to use the asset, or have it *installed ready for use, for a *taxable purpose during an earlier income year.

Note: The second element of cost is worked out under section 40‑190.

 (4) The amount you can deduct is:
 (a) 15% of the *taxable purpose proportion of the cost addition amount if the asset's *effective life is less than 25 years; or