When you create a low-value pool the first time, you choose to allocate low-cost and low-value assets to the pool:
|Type of Asset||Description|
a depreciating asset
- that has a cost of less than $1,000 at the end of the financial year in which it was first used or, installed ready for use (after GST credits or adjustments).
a depreciating asset:
- that has an Opening Adjustable Value for the current year of less than $1,000 (worked out using the diminishing value method), and
- depreciation in prior years have also been worked out using the diminishing value method.
- is not a low-cost asset
When you create a low value pool and allocate a low-cost asset to the pool, all other low-cost assets must also be pooled. This applies for the current year and in subsequent years.
This rule however, does not apply to low-value assets. You can decide whether or not 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. You can only have one low-value pool at a time, however Assets will allow you to have both a low-value pool AND a small business pool.