You can add depreciating assets that have GST credits or adjustment costs, or have an adjustable opening value / written down value of less than $20,000 to a low-value pool and depreciate them at the relevant pool rate.
When first adding assets to the low-value pool, they depreciate at a rate of 18.75% for the current year. For subsequent years it's 37.5%
|UI Text Box|
We'll use these rates regardless of when you allocate the asset to the pool during the year.
We'll calculate the decline in value of an asset that you hold jointly with others. It's based on the cost of your interest in the asset.
This means that you can allocate your interest in the asset to your low-value pool if:
- you hold an asset jointly
- the cost of your interest in the asset or the opening adjustable value of your interest is below $20,000.
When allocating an asset to the pool, estimate the private use percentage for:
- its effective life (for a low-cost asset)
- its effective remaining life at the start of the income year (for a low-value asset).
This percentage is for tax purposes to write-off the asset.
If you create a low-value pool and allocate a low-cost asset to it, you must pool all other low-cost assets that start in that income year and later years. This rule doesn't apply to low-value assets.