Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p18
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 18/34)
Character Range: 5120794–5123386

started to use, or have installed ready for use, for a taxable purpose during an income year for which you were not a *small business entity or did not choose to use this Subdivision—its adjustable value at the start of the income year for which it was allocated to a *general small business pool;
increased by any amounts included in the second element of the asset's *cost from the time mentioned in paragraph (a) or (b) until the beginning of the income year for which you are making the adjustment.
last estimate is:
 (a) your original estimate of the proportion you use, or have *installed ready for use, a *depreciating asset for a *taxable purpose (see section 328‑205); or
 (b) if you have made an adjustment under this section—the latest estimate taken into account under this section.
present year estimate is your reasonable estimate of the proportion you use the asset, or have it *installed ready for use, for a *taxable purpose during the present year.
reduction factor is the number worked out under subsection (4).
 (4) The reduction factor in the formula in subsection (3) is:
 (a) for a *depreciating asset you started to use, or have *installed ready for use, for a *taxable purpose during an income year for which you were a *small business entity and chose to use this Subdivision:
 (b) for an asset you started to use, or have *installed ready for use, for a taxable purpose during an income year for which you were not a *small business entity or did not choose to use this Subdivision:
where:
n is the number of income years (counting part of an income year as a whole year) before the present year for which you have deducted or can deduct an amount for the *depreciating asset under this Subdivision.
rate is the rate applicable to the pool to which the asset is allocated.
Note: The reduction factor for a depreciating asset in your general small business pool which you started to use, or have installed ready for use, for a taxable purpose during an income year for which you were not a small business entity or did not choose to use this Subdivision is:
                  * 0.7 for the income year after it is allocated to the pool; and
                  * 0.49 for the income year after that; and
                  * 0.343 for the income year after that.
 The reduction factor for a depreciating asset in your general small business pool which you started to use, or have installed ready for use, for a taxable purpose during an income year for which you were a small business entity and chose to use this Subdivision is:
                  * 0.85 for the income