Australia only This is step 2 of the Create New Asset wizard for Taxation only or Accounting and Taxation assets. In this scenario, you enter the taxation details for the low small business pool asset (SBP). This step isn't visible if you're creating an Accounting only asset. | UI Expand |
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| title | To enter the taxation details for a new small business pool asset |
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| - In the first step for asset details select Small business pool from the Asset type drop-down.
- Enter the Acquisition date of the asset. By default, this field is automatically filled with the Year start date.
- Select the date from the drop-down calendar.
- Click Today on the drop-down calendar to use the current date.
- You must not enter a date that is later than Year end date.
- If you enter a date prior to Year start date for the year period, this asset is added as a previously depreciated asset and is depreciated at year 2+ rates.
The Start date is automatically filled in with the Year start date. | UI Text Box |
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| Small business pooled assets are always depreciated for the full year regardless of when they were purchased, so you don't need to enter a start date. |
- Enter the Cost of the small business pool asset.
You should claim an immediate write off for the asset by adding it as an immediate deductible asset if the cost of the asset is less than:- $30,000 (dated between 2 April 2019 and 11 March 2020) or
- $150,000 (dated between 12 March 2020 and 30 June 31 December 2020) or
- check the instant asset write-off thresholds on the ATO website for assets that don't fall into those dates.
If you add the asset to the small business pool, you will not receive the immediate write off. A message displays letting you know this and asking you whether you still want to add the asset to the small business pool. Click Yes or No. You can also select Don’t ask again if you don't want to see this message again under similar circumstances. - Enter the Opening written down value of the asset. An Opening written down value can only be entered, if the Acquisition date is prior to the current financial year, for example, if you are loading a previously depreciated asset from another accountant’s schedule.
- Select Asset came from an existing SB Pool if required.
- You can only select Asset came from an existing SB Pool for any previously depreciated assets that are being added to the pool.
- Select it if you are adding assets that were from another accountant.
- This will result in the following rules being applied:
- The pool contribution (taxable value) will not be reduced again by the private use %, as it was already reduced in the original pool.
- No journal will be created to transfer the asset into the pool. The pool account balance is already correct when the original trial balance was placed into the general ledger.
- If a change in private use is applied later, selecting Asset came from an existing SB Pool will result in the Tax year added to pool value being based on the acquisition date rather than the year it was added to the register.
- If you are adding the assets from general assets, then you must deselect Asset came from an existing SB Pool.
- Asset came from an existing SB Pool is selected by default when you are migrating small business pooled assets from another system.
- Select Motor vehicle if the asset is a motor vehicle.
- The Cost limit of the motor vehicle field is only relevant if the Motor vehicle is selected. The Cost limit field is automatically filled with the ATO value relevant for the current tax year.
- If the asset was a previously depreciated asset loaded from say another accountant’s schedule, the Cost limit field can be edited. You should enter the Cost limit that was applied at the time the asset was first pooled in the other system, as this will be used at a later date when you dispose of the asset (to calculate the taxable termination value).
- If the asset is a motor vehicle:
- the pool contribution (taxable value) is limited to the cost limit.
- depreciation for the first year will include the motor vehicle immediate write off amount in addition to the year 1 rate, to the amount of the cost limit.
- Enter the Private use % for the asset.
- The value must be between 0 and 100%.
- Click the Private use adjustment ellipsis.
The ellipsis is only enabled if the asset has been depreciated in previous years, for example, the acquisition date was prior to this financial year.
The Private use adjustment window opens. This is where adjustments are made to the pool total because of changes in the private use percentage.- Select Asset was first used under the ATO’s “simplified depreciation” rules if required.
If it's selected, a different reduction factor is used when calculating the private use adjustment amount. Enter the Tax year the asset was allocated to a pool.
For previously depreciated assets, this field defaults to the financial tax year that the asset was acquired.
You can change the default if required. For example, it may be necessary to change the default tax year if you are loading an asset from a schedule provided by another accountant. | UI Text Box |
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| If the asset has been part of the pool for < 1 year or > 4 years, there is no adjustment for private use. |
- Enter Private use last year %.
This field will automatically default to the value entered in the main screen. This value can be changed if required. Enter Private use this year %.
This field will automatically default to the value entered in the main screen. This value can be changed if required.
If a change to the Private use this year % is made here, it will also be reflected in the Private use % field of the main screen. | UI Text Box |
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| If the difference in private use percentage between different years is less than 10%, then there is no adjustment to private use. |
- Enter the Asset value.
The Asset value is defined by the ATO to be the cost of the asset less its depreciation since it was first used or installed ready for use, at the time it was first added to the pool. The cost should include any additions made to the asset, after taking into account its depreciation.
If you select Asset came from an existing SB pool, the Asset value defaults to the cost. You should edit the Asset value field if, for instance, you are loading this asset from another accountant’s schedule and the asset value was not the same as the cost.
If you deselect Asset came from an existing SB pool, the Asset value field defaults to the opening written down value in the year it was first added to the pool (and cannot be edited).
The Private use adjustment is calculated. - Click OK.
You are returned to Setting taxation details for a small business pool (SBP) asset.
The Pool contribution (Taxable value) is calculated.
The Calculate decline in value section contains a number of read-only fields:- Depreciation Rate
This field is based on the start date. It changes from 15% to 30% depending on whether the asset has already been depreciated in previous years. - Calculated depreciation
This is field is calculated as the pool contribution (taxable value) multiplied by the depreciation rate. MV immediate write off
If you purchased a motor vehicle, an immediate write off of $5,000 is used in the calculations up to 31 December 2013.
If you purchased a motor vehicle on or after 1 January 2014, no immediate write off is calculated. | UI Text Box |
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| This is defined by compliance regulations issued from the ATO. |
- Total depreciation
This is the sum of the calculated depreciation and the MV immediate write off. - Termination value
This is only relevant once an asset has been sold and you are editing the taxation details for a small business pool asset. - Taxable termination value
This is only relevant once an asset has been sold and you are editing the taxation details for a small business pool asset. - Closing written down value
This is calculated once the Cost or Opening written down value has been entered, based on the other values above.
- Click Next.
- If the asset being created is an Accounting or Accounting and Taxation asset then continue to setting accounting details for a small business pool (SBP) asset.
- If the asset being created is a Taxation only asset then continue to setting general details for a small business pool (SBP) asset.
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