Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p22
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 22/37)
Character Range: 447241–449911

the increasing adjustment.
 (5) An amount is included in the assessable income of the entity that *held the asset if the entity has a *decreasing adjustment that relates directly or indirectly to that *taxable supply in a later income year. The amount included is the amount of the decreasing adjustment.
 (6) The entity that *held the asset can deduct an amount if the entity has an *increasing adjustment that relates directly or indirectly to that *taxable supply in a later income year. The amount it can deduct is the amount of the increasing adjustment.

27‑100  Pooling
 (1) This section contains special rules for expenditure (the pooled expenditure) incurred by an entity:
 (a) on a *depreciating asset allocated to a low‑value pool; or
 (b) on a depreciating asset allocated to a pool under Division 328 for or in an income year; or
 (c) on *in‑house software if the expenditure on the software is allocated to a software development pool; and
 (d) on *project amounts if the amounts are allocated to a project pool.

Reduction to pools etc.
 (2) There is a reduction under subsection (3) or (5) if:
 (a) the pooled expenditure relates directly or indirectly to a *creditable acquisition or *creditable importation; and
 (b) the entity is or becomes entitled to an *input tax credit in an income year (the credit year) for the acquisition or importation and the credit year occurs after the income year in which the acquisition or importation occurred.
 (2A) There is a reduction under subsection (4) if:
 (a) the pooled expenditure relates directly or indirectly to a *creditable acquisition or *creditable importation; and
 (b) the entity is or becomes entitled to an *input tax credit in an income year (the credit year) for the acquisition or importation.

Reduced cost of assets allocated to a pool
 (2B) A *depreciating asset's *cost is reduced if:
 (a) an entity's acquisition or importation of the asset constitutes a *creditable acquisition or *creditable importation; and
 (b) the entity is or becomes entitled to an *input tax credit for the acquisition or importation and the income year in which the acquisition or importation occurred is the same as the one in which the input tax credit arose; and
 (c) the asset is allocated to a low‑value pool or a pool under Division 328 for or in that year.
The reduction is the amount of the input tax credit.

Low‑value pools
 (3) For a low‑value pool, the *closing pool balance of the pool for:
 (a) if the credit year is later than the first income year for which *depreciating assets were allocated to the pool—the income year before the credit year; or
 (b) if the credit year is the first income year