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CA_Sam88(Newbie)Newbie
20 June 2024

General depreciation rules (GDR) explaining that asset costing less than $1000 can be added to low cost pool. This rules applicable to Non-SBE clients as turnover limit more than $10M. So practically businesses having so much of turnover will expect that any asset costing less than $1000 should directly go to profit and loss account, instead of going to low cost pool. So is it compulsory to use low cost pool or can use profit and loss account for write off. As no logic in there.

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350 views
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Bruce4Tax(Taxicorn)Taxicorn
21 June 2024

So practically businesses having so much of turnover will expect that any asset costing less than $1000 should directly go to profit and loss account, instead of going to low cost pool


They are expected to follow the law.


So, if not SBE then compulory:


  1. Depn assets costing under $ 300 -> expense
  2. Depn assets costing $ 300 to under $ 1000 -> low value pool
  3. Depn assets costing $ 1000+ -> depn at effective life rates


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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
21 June 2024

So practically businesses having so much of turnover will expect that any asset costing less than $1000 should directly go to profit and loss account, instead of going to low cost pool


They are expected to follow the law.


So, if not SBE then compulory:


  1. Depn assets costing under $ 300 -> expense
  2. Depn assets costing $ 300 to under $ 1000 -> low value pool
  3. Depn assets costing $ 1000+ -> depn at effective life rates


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Is it compulsory to follow low value or cost pool ? | ATO Community