Document ID: chunk:federal_register_of_legislation:C2010C00617:clause:6_7:p2
Version: federal_register_of_legislation:C2010C00617
Segment Type: clause
Provision Reference: sch 6 cl 7 (pt 2/2)
Character Range: 98281–100527

of the percentage (if any) of your proposed use of the plant that will be for purposes other than the *purpose of producing assessable income.

 (2) For *low‑cost plant, you must reduce its *cost by an amount representing the percentage (if any) you estimated for it under subsection (1).

 (3) For *plant referred to in subsection 42‑455(3), you must reduce its *undeducted cost at the start of the income year by that percentage.

42‑470  Deductions for plant in low‑value pools

 (1) You calculate your depreciation deduction for *plant in a *low‑value pool for an income year in this way:
 (a) take 183/4% of the *costs of *low‑cost plant you allocated to the pool for that year; and
 (b) add to it 371/2% of the sum of:
 (i) the *pool closing balance for the previous income year; and
 (ii) the *undeducted costs of plant, at the start of the income year, that you allocated to the pool for that year under subsection 42‑455(3).

 (2) The pool closing balance of a *low‑value pool for an income year is the sum of:
 (a) the *pool closing balance of the pool for the previous income year; and
 (b) the *costs of *low‑cost plant you allocated to the pool for that year; and
 (c) the *undeducted costs of any *plant you allocated to the pool for that year under subsection 42‑455(3) as at the start of that year;
less the depreciation deductions for the pool worked out under subsection (1).

Note: The pool closing balance may be reduced under section 42‑475 if a balancing adjustment event happens.

42‑475  Balancing adjustment events

 (1) If a *balancing adjustment event happens to *plant in a *low‑value pool in an income year, the *pool closing balance for that year is reduced by the *termination value of the plant.

 (2) If you had made an estimate for that *plant under section 42‑465, the *pool closing balance for that year is reduced by that part of the *termination value of the plant that represents the percentage of your use of the plant you estimated would be for the *purpose of producing assessable income.

 (3) If the sum of the *termination values, or the part of it, applicable under subsection (1) or (2) exceeds the *pool closing balance of the pool for that year, the excess is included in your assessable income.