Low Value Pool Write Off
<h1 >Low-value pools</h1>
<p >You can work out the depreciation on certain low-cost and low-value assets you hold by allocating them to a low-value pool and depreciating them at a set annual rate.
A <strong >low-cost asset</strong> is one that costs less than $1,000 after deducting any GST you are entitled to claim in your business activity statement.
A <strong >low-value asset</strong> is an asset that has depreciated over one or more years and now has a written-down value of less than $1,000.</p>
<h2 >Starting a low-value pool</h2>
<p >You start a low-value pool when you first choose to allocate a low-cost or low-value asset to the pool.
Once you choose to create a low-value pool and allocate a low-cost asset to it, you must pool all other low-cost assets you start to hold. You can decide whether to allocate low-value assets to the pool on an asset-by-asset basis.
Once you've allocated an asset to the pool, it must remain there.</p>
<h2 >Calculating the depreciation</h2>
<p >You then calculate the depreciation of all the assets in the low-value pool once a year at a diminishing value rate of 37.5%.
If you purchase or acquire an asset and allocate it to the pool during an income year, you calculate its deduction at a rate of 18.75% (that is, half the pool rate) in that first year. You use this rate regardless of when you allocate the asset to the pool during the year.</p>
<h2 >Assets you can’t allocate to a low-value pool</h2>
<p >You cannot allocate the following assets to a low-value pool:</p>
<ul >
<li >assets for which you previously calculated depreciation deductions using the prime cost method</li>
<li >horticultural plants, including grapevines</li>
<li >assets for which you can claim deductions under the simpler depreciation for small business rules</li>
<li >assets that cost $100 or less for which you can claim an immediate deduction</li>
<li >certain assets you use to conduct research and development activities</li>
<li >portable electronic devices (including laptops, portable printers, personal digital assistants, calculators, mobile phones and portable GPS navigation receivers), computer software, protective clothing, briefcases and tools of trade, if:
<ul >
<li >you provided the item to your employee, or</li>
<li >you paid for some or all of the cost of the item (or reimbursed your employee for it) and the provision, payment or reimbursement was exempt from fringe benefits tax.</li>
</ul>
</li>
</ul>
<p> </p>