General Pool
<p>Small Business Entities can add all depreciating assets over the immediate write-off threshold to a General Pool. The General Pool is then depreciated at a standard rate.
 
LodgeiT has a General Pool depreciation module for automatically handling the calculations.
 </p>
<h1 >Simplified depreciation for small business</h1>
<p >You can choose to use the simplified depreciation rules if you have a small business with an aggregated annual turnover (the total normal income of your business and that of any associated businesses) of less than $2 million.
Under these rules, you:</p>
<ul >
<li >immediately write-off – deduct their full cost in the year you buy them – most depreciating assets that cost less than $20,000* each that were bought and used, or installed ready for use from 7.30pm (AEST) on 12 May 2015 until 30 June 2017</li>
<li >pool most other depreciating assets that cost $20,000 or more in a small business asset pool and claim  
<ul >
<li >a 15% deduction in the first year (regardless of when you purchased or acquired them during the year)</li>
<li >a 30% deduction each year after the first year</li>
</ul>
 </li>
<li >write-off the balance of your small business pool at the end of an income year if the balance – before applying any other depreciation deduction – is less than $20,000.</li>
</ul>
<p >* The current instant asset write-off threshold is $20,000. It has changed over the last few years (see <a href="https://www.ato.gov.au/Business/Income-and-deductions-for-business/In-detail/Capital-allowances/Simplified-depreciation---rules-and-calculations/?page=5#Instant_asset_write_off" >Instant asset write-off</a>).
If you choose to use the simplified depreciation rules, you must:</p>
<ul >
<li >use them to work out deductions for all your depreciating assets except those specifically <a href="https://www.ato.gov.au/Business/Income-and-deductions-for-business/Depreciating-assets/Simpler-depreciation-for-small-business/#Exclusions" class="bookmark" >excluded</a></li>
<li >apply the entire set of rules, not just individual elements (such as the instant asset write-off).</li>
</ul>
<p >You can choose to stop using the simplified depreciation rules or become ineligible to use them, in which case you'll then use the <a href="https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/General-depreciation-rules---capital-allowances/" >general depreciation rules</a>. However, any assets in your small business pool will continue to be depreciated in the pool, even if you stop using the simplified depreciation rules.</p>