Document ID: chunk:federal_register_of_legislation:C2004A00846:clause:1_1:p6
Version: federal_register_of_legislation:C2004A00846
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 6/21)
Character Range: 14231–16763

Division 40.

 (8) A *depreciating asset referred to in subsection (7) is not allocated to a pool under this Subdivision and does not qualify for a deduction under section 328‑180.

328‑180  Low cost assets

 (1) You deduct the *taxable purpose proportion of the *adjustable value of a *depreciating asset for the income year in which you start to use the asset, or have it *installed ready for use, for a *taxable purpose if:
 (a) you were an *STS taxpayer for that year and the year in which you started to *hold it; and
 (b) the asset is a *low‑cost asset.
You cannot deduct any further amount for the asset.

 (2) An asset to which this section applies is not allocated to a pool.

328‑185  Pooling

 (1) As an *STS taxpayer, you deduct amounts for your *depreciating assets (except *low‑cost 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 are 2 kinds of pools:
 (a) a general STS pool to which *depreciating assets having *effective lives of less than 25 years are allocated; and
 (b) a long life STS pool to which depreciating assets having effective lives of 25 years or more 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 became, an *STS taxpayer; 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 STS pool or *long life STS 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 STS pool or long life STS pool according to its *effective life.

 (4) A *depreciating asset that you start to use, or have *installed ready for use, for a *taxable purpose during an income year while you are an *STS taxpayer is allocated to the appropriate 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 long life assets

 (5) You can choose not to have a *depreciating asset allocated to a *long life STS pool to which it would otherwise have been allocated 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,