Document ID: chunk:federal_register_of_legislation:C2004A00846:clause:1_1:p12
Version: federal_register_of_legislation:C2004A00846
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 12/21)
Character Range: 28504–31086

the year in which a *depreciating asset is allocated to a pool, make a reasonable estimate of the proportion you use the asset, or have it *installed ready for use, for a *taxable purpose in that year.

 (1A) You must make an adjustment for the present year if your estimate for that year under subsection (1) is different by more than 10 percentage points from:
 (a) your original estimate (see section 328‑205); or
 (b) if you have made an adjustment under this section—the most recent estimate you made under subsection (1) that resulted in an adjustment under this section.

 (2) The adjustment is made to the *opening pool balance of the *general STS pool or *long life STS pool to which the asset was allocated, and it must be made before you calculate your deduction under this Subdivision for the present year.

Note: The opening pool balance will be reduced if the adjustment worked out under subsection (3) is a negative amount. It will be increased if the adjustment is positive.

 (3) The adjustment is:
where:

asset value is:
 (a) for a *depreciating asset you started to use, or have *installed ready for use, for a *taxable purpose while you were an *STS taxpayer—the asset's *adjustable value at that time; or
 (b) for an asset you started to use, or have installed ready for use, for a taxable purpose while you were not an STS taxpayer—its adjustable value at the start of the income year for which it was allocated to a *general STS pool or a *long‑life STS pool;
increased by any amounts included in the second element of the asset's *cost from the time mentioned in paragraph (a) or (b) until the end of the income year for which you are making the adjustment.

last estimate is:
 (a) your original estimate of the proportion you use, or have *installed ready for use, a *depreciating asset for a *taxable purpose (see section 328‑205); or
 (b) if you have made an adjustment under this section—the latest estimate taken into account under this section.

present year estimate is your reasonable estimate of the proportion you use the asset, or have it *installed ready for use, for a *taxable purpose during the present year.

reduction factor is the number worked out under subsection (4).

 (4) The reduction factor in the formula in subsection (3) is:
 (a) for a *depreciating asset you started to use, or have *installed ready for use, for a *taxable purpose while you were an *STS taxpayer:
 (b) for an asset you started to use, or have *installed ready for use, for a taxable purpose while you were not an STS taxpayer:
where:

n is the number of income