Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_4:p5
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 5/9)
Character Range: 97933–100580

Subdivision is about

      You may choose to work out the decline in value of low‑cost assets (assets costing less than $1,000) and certain other depreciating assets through a low‑value pool.
      You may also choose to deduct amounts for expenditure you incur on in‑house software through a software development pool.

Table of sections

Operative provisions

40‑425 Allocating assets to a low‑value pool
40‑430 Rules for assets in low‑value pools
40‑435 Private or exempt use of assets
40‑440 How you work out the decline in value of assets in low‑value pools
40‑445 Balancing adjustment events
40‑450 Software development pools
40‑455 How to work out your deduction
40‑460 Your assessable income includes consideration for pooled software

[This is the end of the Guide.]

Operative provisions

40‑425  Allocating assets to a low‑value pool

 (1) You may choose to allocate a *low cost asset you *hold to a low‑value pool for the income year in which you start to use it, or have it *installed ready for use, for a *taxable purpose.

 (2) A low‑cost asset is a *depreciating asset, except a *horticultural plant (including a grapevine) whose *cost as at the end of the income year in which you start to use it, or have it *installed ready for use, for a *taxable purpose is less than $1,000.

 (3) You may also choose to allocate a *low‑value asset to a low‑value pool.

 (4) You cannot allocate a *depreciating asset to a low‑value pool if:
 (a) its *cost does not exceed $300; and
 (b) you use the asset predominantly for the *purpose of producing assessable income that is not income from carrying on a *business; and
 (c) the asset is not part of a set of assets that you started to hold in that income year where the total cost of the set of assets exceeds $300; and
 (d) the total cost of the asset and any other identical, or substantially identical, asset that you start to hold in that income year does not exceed $300.

 (5) A low‑value asset is a *depreciating asset, except a *horticultural plant (including a grapevine), you *hold:
 (a) if you have deducted or can deduct amounts for it under this Division for a previous income year—for which you used the *diminishing value method; and
 (b) that has an *opening adjustable value for the current year of less than $1,000 (worked out using the diminishing value method); and
 (c) that is not a *low‑cost asset.

 (6) A *depreciating asset:
 (a) to which Division 58 (about assets previously owned by an exempt entity) applied for an entity sale situation; and
 (b) for which you used the *diminishing value method; and
 (c) whose *adjustable value as at the end of the income