Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p24
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 24/37)
Character Range: 451963–454681

or becomes entitled to an *input tax credit for the expenditure; and
 (c) the entitlement arises in the income year in which the expenditure was incurred.
The reduction is the amount of the input tax credit.

Increasing adjustments
 (8) There is an increase under subsection (9) if the entity has an *increasing adjustment (except one that arises under Division 129 or 132 of the *GST Act) in an income year (the adjustment year) that relates directly or indirectly to a *creditable acquisition or *creditable importation to which the pooled expenditure relates.
Note: For an increasing adjustment that arises under Division 129 or 132 of the GST Act, see section 27‑92.
 (9) An amount equal to the amount of that *increasing adjustment is added to:
 (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.

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