Small business (SB) pool rules
The option to pool assets is available when calculating depreciation for tax purposes in MYOB Client Accounting - Assets.
Assets allocated to a small business pool will be depreciated at:
15% in the first year for newly acquired assets
30% in subsequent years (including previously depreciated assets)
Depreciation is calculated for the full financial year/period, regardless of when the asset was acquired during the year.
MYOB Assets applies the ATO's simplified depreciation rules for small business pooled assets automatically.
This means if the pool balance (prior to deprecation) is below the threshold, Assets will automatically write-off the pool balance, regardless of whether your client is eligible to claim a deduction under these rules.
The ATO allows you to choose whether to use the simplified depreciation rules if you have a small business with an aggregated turnover of less than:
- $500 million (from 12 March 2020 onwards)
- $50 million (from 7.30 pm on 2 April 2019 to 11 March 2020)
- $10 million (from 1 July 2016 to 7.30 pm on 2 April 2019)
- $2 million for previous income years.
If your client is not eligible to claim a deduction under the Simplified Depreciation rules, avoid allocating assets to the Small Business pool.
For information on how to create a small business pool or add an asset to the pool, see our topic on Pooled assets.
More information on Simplified Depreciation for small businesses is available in the ATO's Guide to Depreciating Assets.