Document ID: chunk:federal_register_of_legislation:C2004A00846:clause:1_1:p4
Version: federal_register_of_legislation:C2004A00846
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 4/21)
Character Range: 9106–11971

the STS, the business changes its accounting method to an accruals basis.

 The customers of Sonja's Shoe Shop owe $10,000 at the end of the 2003‑04 income year. That amount is not included in assessable income for that income year because it was not received in that year.

 This section includes the $10,000 in assessable income for the 2004‑05 income year. This is because the STS accounting method did not bring it to account in the 2003‑04 income year.

General deductions etc.

 (3) Any *general deductions, and deductions under section 25‑5 or 25‑10, that, apart from paragraph 328‑105(1)(b), you would have incurred before the changeover year (while you were an *STS taxpayer) and that you have not deducted because you have not paid them can be deducted for the changeover year.

Example: To continue the example, Sonja's Shoe Shop made purchases of $7,000 in the 2003‑04 income year, but could not deduct that amount because it was not paid during that year.

 This section allows Sonja's Shoe Shop to deduct the $7,000 for the 2004‑05 income year. This is because the STS accounting method did not allow it as a deduction in the 2003‑04 income year.

Subdivision 328‑D—Capital allowances for STS taxpayers

Guide to Subdivision 328‑D

328‑170  What this Subdivision is about

      STS taxpayers deduct amounts for most of their depreciating assets on a diminishing value basis using a pool that is treated as a single depreciating asset.
      Broadly, a pool is made up of the costs of the depreciating assets that are allocated to it or, in some cases, a proportion of those costs.
      The pool rate is 30% for most depreciating assets, and 5% for depreciating assets that have an effective life of 25 years or more.
      There is an immediate deduction for low‑cost assets.
      This Subdivision sets out how to calculate the pool deductions, and also sets out the consequences of:

                (a) disposal of depreciating assets; and
                (b) ceasing to be an STS taxpayer; and
                (c) changing the business use of depreciating assets.

Table of sections

Operative provisions

328‑175 Calculations for depreciating assets
328‑180 Low cost assets
328‑185 Pooling
328‑190 Calculation
328‑195 Opening pool balance
328‑200 Closing pool balance
328‑205 Estimate of taxable use
328‑210 Low pool value
328‑215 Disposal etc. of depreciating assets
328‑220 What happens when you stop being an STS taxpayer
328‑225 Change in business use
328‑230 Estimate where deduction denied
328‑235 Interaction with Divisions 85 and 86

[This is the end of the Guide.]

Operative provisions

328‑175  Calculations for depreciating assets

 (1) You calculate your deductions and some amounts of assessable income under this Subdivision instead of under Division 40 for an income year for a *depreciating asset that you *hold if:
 (a)