Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 11/34)
Character Range: 5103949–5106490

asset's cost and you have deducted or can deduct an amount under subsection (2) for an amount previously included in the second element of the asset's cost.
 (4) This Division applies to the asset as if its *adjustable value were the amount included in the second element of its *cost as mentioned in subsection (3).
 (5) Subsection (3) applies even if the amount is included in the second element of the asset's *cost during an income year for which you are not a *small business entity or do not choose to use this Subdivision.

328‑185  Pooling
 (1) If you are a *small business entity for an income year and you have chosen to use this Subdivision for that year, you deduct amounts for your *depreciating assets (except assets for which you have deducted or can deduct an amount under section 328‑180) through a pool, which allows you to deduct amounts for them as if they were a single asset, thereby simplifying your calculations. You use one rate for the pool.
 (2) There is a general small business pool to which *depreciating assets are allocated.

Allocating assets to a pool
 (3) A *depreciating asset:
 (a) that you *hold just before, and at the start of, the first income year for which you are, or last were, a *small business entity; and
 (b) for which you calculate your deductions under this Subdivision instead of under Division 40; and
 (c) that has not previously been allocated to your *general small business pool; and
 (d) that you have started to use, or have *installed ready for use, for a *taxable purpose;
is automatically allocated to your general small business pool.
 (4) A *depreciating asset that you start to use, or have *installed ready for use, for a *taxable purpose during an income year for which you are a *small business entity and you choose to use this Subdivision is allocated to the *general small business pool at the end of that year.
Note: The allocation happens even if you no longer hold the asset at the end of that income year.

Exception for assets used or installed before 1 July 2001
 (5) You can choose not to have a *depreciating asset allocated to the *general small business pool 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 a *small business entity and you choose to use this Subdivision. Once you have made the choice for an asset, you cannot