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DamoDD(Initiate)Initiate
6 June 2023

I am an employee, I am currently completing a FY21/22 tax return. I have two assets that are between $300 and $1000. I added them to the assets tab in the Depreciation and capital allowances tool. I read from this page below that I am able to transfer these assets to the LVP as an employee.


https://www.ato.gov.au/individuals/income-deductions-offsets-and-records/deductions-you-can-claim/tools-computers-and-items-you-use-for-work/depreciating-assets-you-use-for-work/


I wanted to compare the depreciation between the general assets depreciating as normal and the LVP depreciation. So I transferred them to the LVP to have a look. Note, I have never used LVP before.


When I exited the deductions screen, I noticed that there was now a new section in my tax return for Sole trader / Business, which has a loss in there equivalent to the depreciation amount for these two items in the LVP. I was not able to delete this section from my personalisation section in Step 3 as it had pre-filled data from the LVP which populated into this. This section is scary and I have no idea what this business talk is but I couldn’t delete it. I now want to un-transfer the assets from the LVP and pretend this nightmare didn’t happen, but I am not able to. I am able to delete the assets from the LVP, but I can’t delete the history it shows in the assets tab that I transferred these two assets to the LVP.


I contacted Live Chat to see if they could provide some help to delete this stuff but they also did not understand why I could not reverse this transfer whilst I am still editing my return. Can I fix this issue within this tax return? I will delete the drafted tax return to undo this LVP transfer if I have to.


If you have the time, could you also please explain why LVP assets elicit the sole trader/business section even though the guidance indicates an employee can use this function?

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4 replies
2,001 views
4 replies

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Most helpful reply

AriATO(Community Support)Community Support
9 June 2023

Hi @DamoDD


I was able to replicate this using the online services simulator. The depreciation tool gave me a warning saying once the transfer to the LVP has been completed it can't be reversed. I know it's not ideal but I found info that advised, if you need to amend a transferred record you need to request an amendment in writing.


After I transferred the assets, the tool asks some questions including: Are the assets in your Low-value pool solely used in business and not for any other income producing purpose? 

Is it possible you may have selected yes? This would explain why myTax prefilled the business section of your return.

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Most helpful reply

AriATO(Community Support)Community Support
9 June 2023

Hi @DamoDD


I was able to replicate this using the online services simulator. The depreciation tool gave me a warning saying once the transfer to the LVP has been completed it can't be reversed. I know it's not ideal but I found info that advised, if you need to amend a transferred record you need to request an amendment in writing.


After I transferred the assets, the tool asks some questions including: Are the assets in your Low-value pool solely used in business and not for any other income producing purpose? 

Is it possible you may have selected yes? This would explain why myTax prefilled the business section of your return.

Liked by DamoDD
DamoDD(Initiate)Initiate
19 June 2023

Thanks for your response.


I did see the warning, however, noting the tax return is still in draft I assumed that nothing could be permanent until it was submitted. After some initial advice, I deleted the tax return and restarted it, but the only thing remaining was the transferred assets, which was frustrating. After escalating this issue through the help line, my assumption was in fact incorrect. It turns out that it cannot be undone at all. Now while the transferred assets remain visible in the assets tab (and the transferred assets tab), when you select the income year, it does not show the transferred assets (assuming that you delete them from the LVP first). I was informed that this would not have any material effect on depreciating assets now or in the future. So that is good.


You are right, I did select yes to that business question which is why it appeared in the business section. I was confused with the wording.

Liked by DamoDD
nickyeld(Newbie)Newbie
10 Aug 2023

Hello @DamoDD ! I was able to speak with someone via the ATO Live Chat. They (Raechel) helped me resolve this issue while I was still completing my return. I'll include the relevant bits of our conversation below.


Me: Hi Raechel, I was filing my tax return for the last financial year. While entering my deductions, I have accidentally left the box ticked for whether the expensed items were primarily used for business, and transferred the assets to the low value pool deduction. Now my return thinks I'm a sole business owner/partner instead of an individual employee of a business.


R: were you using the depreciation tool for that?


Me: Yes. I've tried removing all the assets, selecting 'no' to the first question and re-adding the assets, but when I click 'Save to myTax' and return to my return claim, it still has required fields flagged for business that I need to complete (Business/sole trader, partnership and trust income).


R: so once you remove them from the low value pool section, go out of it and in the section that it is referring to you just need to go in and click delete on all the sections and then go back to step/page 3 and untick the business sole trader box aswell.


This worked for me (thankfully) - I made sure to open up every single section on the Business/sole trader page and press delete - and I'm now going back through and adding my assets/expenses again. Hope this saves someone else!

Liked by DamoDD
nickyeld(Newbie)Newbie
10 Aug 2023

Note that this solution doesn't un-transfer the assets from the LVP, but it'll let you file your return without claiming to be a business owner/sole trader. Raechel said I'm able to re-add my assets manually through the Other work-related expenses section on my return.

Liked by DamoDD

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