Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) You may choose to allocate a * low cost asset you * hold to a low - value pool for the income year in which you start to use it, or have it * installed ready for use, for a * taxable purpose.
(2) A low - cost asset is a * depreciating asset (except a * horticultural plant) whose * cost as at the end of the income year in which you start to use it, or have it * installed ready for use, for a * taxable purpose is less than $1,000.
(3) You may also choose to allocate a * low - value asset to a low - value pool.
(4) You cannot allocate a * depreciating asset to a low - value pool if:
(a) its * cost does not exceed $300; and
(b) you use the asset predominantly for the * purpose of producing assessable income that is not income from carrying on a * business; and
(c) the asset is not part of a set of assets that you started to hold in that income year where the total cost of the set of assets exceeds $300; and
(d) the total cost of the asset and any other identical, or substantially identical, asset that you start to hold in that income year does not exceed $300.
(5) A low - value asset is a * depreciating asset, except a * horticultural plant, you * hold:
(a) if you have deducted or can deduct amounts for it under this Division for a previous income year--for which you used the * diminishing value method; and
(b) that has an * opening adjustable value for the current year of less than $1,000 (worked out using the diminishing value method); and
(c) that is not a * low - cost asset.
(6) A * depreciating asset:
(a) to which Division 58 (about assets previously owned by an exempt entity) applied for an entity sale situation; and
(b) for which you used the * diminishing value method; and
(c) whose * adjustable value as at the end of the income year before the * current year is less than $1,000;
is also a low - value asset .
Exception: small business entities
(7) You cannot allocate a * depreciating asset to a low - value pool if you deduct amounts for it under Subdivision 328 - D (about capital allowances for small business entities).
Exception: medium sized businesses
(7A) You cannot allocate a * depreciating asset to a low - value pool if the decline in value of the asset for any income year is determined by section 40 - 82 (about assets costing below a threshold).
Exception: R&D
(8) You cannot allocate a * depreciating asset to a low - value pool if you are entitled under section 355 - 100 to a * tax offset for a deduction under section 355 - 305 for the asset for an income year starting before, or at the same time as, the allocation has effect.
Note: A similar rule applies if you deducted or could have deducted amounts under former 73BA of the Income Tax Assessment Act 1936 (see section 40 - 430 of the Income Tax (Transitional Provisions) Act 1997 ).