Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8:p12
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8 (pt 12/13)
Character Range: 1011680–1014344

(b) *low‑value assets allocated to the pool for the *current year.

           Step 3. Add to the step 2 amount 371/2% of the sum of:

                (a) the *closing pool balance for the previous income year; and
                (b) the taxable use percentage of the *opening adjustable values of *low‑value assets, at the start of the income year, that you allocated to the pool for that year.

           Step 4. The result is the decline in value of the *depreciating assets in the pool.
 (2) The closing pool balance of a low‑value pool for an income year is the sum of:
 (a) the *closing pool balance of the pool for the previous income year; and
 (b) the taxable use percentage of the *costs of *low‑cost assets you allocated to the pool for that year; and
 (c) the taxable use percentage of the *opening adjustable values of any *low‑value assets you allocated to the pool for that year as at the start of that year; and
 (d) the taxable use percentage of any amounts included in the second element of the cost for the income year of:
 (i) assets allocated to the pool for an earlier income year; and
 (ii) low‑value assets allocated to the pool for the *current year;
less the decline in value of the *depreciating assets in the pool worked out under subsection (1).
Note: The closing pool balance may be reduced under section 40‑445 if a balancing adjustment event happens.

40‑445  Balancing adjustment events
 (1) If a *balancing adjustment event happens to a *depreciating asset in a low‑value pool in an income year, the *closing pool balance for that year is reduced (but not below zero) by the taxable use percentage of the asset's *termination value.
 (2) If the sum of the *termination values, or the part of it, applicable under subsection (1) exceeds the *closing pool balance of the pool for that year, the excess is included in your assessable income.

40‑450  Software development pools
 (1) You may choose to allocate amounts of expenditure you incur on *in‑house software in an income year to a software development pool if it is expenditure on developing, or having another entity develop, computer software.
Note: You cannot allocate expenditure on in‑house software to a software development pool if it is expenditure on acquiring computer software or a right to use computer software.
 (2) Once you choose to create a software development pool for an income year, any amounts of the kind referred to in subsection (1) you incur after the pool is created (whether in that income year or a later one) must be allocated to a software development pool.
 (3) However, an amount of expenditure on *in‑house software can only be allocated