Document ID: chunk:federal_register_of_legislation:C2004C01190:clause:2_216:p7
Version: federal_register_of_legislation:C2004C01190
Segment Type: clause
Provision Reference: sch 2 cl 216 (pt 7/8)
Character Range: 148783–151538

of the pool for the adjustment year; or
 (b) for a pool under Division 328—the *opening pool balance of the pool for the adjustment year; or
 (c) for *in‑house software—the amount of expenditure allocated to the software development pool for the adjustment year; or
 (d) for a project pool—the *pool value for the adjustment year.

Decreasing adjustments

 (10) There is a decrease under subsection (11) if the entity has a *decreasing adjustment (except one that arises under Division 129 or 132 of the *GST Act) in an income year (also the adjustment year) that relates directly or indirectly to a *creditable acquisition or *creditable importation to which the pooled expenditure relates.

Note: For a decreasing adjustment that arises under Division 129 or 132 of the GST Act, see section 27‑87.

 (11) An amount equal to the amount of the *decreasing adjustment is applied in reduction of:
 (a) for a low‑value pool:
 (i) if the adjustment year is later than the first income year for which *depreciating assets were allocated to the pool—the *closing pool balance of the pool for the income year before the adjustment year; or
 (ii) if the adjustment year is the first income year for which *depreciating assets were allocated to the pool—the *closing pool balance of the pool for the adjustment year; or
 (b) for a pool under Division 328—the *opening pool balance of the pool for the adjustment year; or
 (c) for *in‑house software—the amount of expenditure allocated to the software development pool for the adjustment year; or
 (d) for a project pool—the *pool value for the adjustment year.

 (12) If the amount available for reduction under subsection (11) is more than the amount referred to in paragraph (11)(a), (b), (c) or (d) (whichever is applicable), the excess is included in the entity's assessable income unless the entity is an *exempt entity.

27‑105  Other Division 40 expenditure

 (1) This section applies to expenditure for which an entity can deduct amounts under Division 40 (but not under Subdivision 40‑B or 40‑E, or Subdivision 40‑I to the extent that that Subdivision relates to project pools).

 (2) The amount of the expenditure is reduced if the entity is or becomes entitled to an *input tax credit for a *creditable acquisition or *creditable importation to which the expenditure directly or indirectly relates. The reduction is the amount of the input tax credit that relates to that expenditure.

 (3) If the entity has a *decreasing adjustment in an income year that relates directly or indirectly to the expenditure, an amount equal to the decreasing adjustment is included in the entity's assessable income for that income year.

 (4) If the entity has an *increasing adjustment in an income year that relates