I understand using the Low Value Pool (LV) is not compulsory. Is there any reason or advantage for using a LVP in favour of depreciating assets over their useful life - both for work related depreciating assets and depreciating assets related to my rental property?
At 15% in the first year and 30% every year after, this will give you a better depreciation rate than an item with an effective life of 8 years or more.
An item purchased on June 30, for example, 15% of its cost can be claimed.
Disadvantage of low value pools, once you have established one, every asset you buy between $301 and $999 must be added to the pool.
Whether one is established should be determined by what type of depreciating assets you are likely to purchase with regard to their effective lives.
At 15% in the first year and 30% every year after, this will give you a better depreciation rate than an item with an effective life of 8 years or more.
An item purchased on June 30, for example, 15% of its cost can be claimed.
Disadvantage of low value pools, once you have established one, every asset you buy between $301 and $999 must be added to the pool.
Whether one is established should be determined by what type of depreciating assets you are likely to purchase with regard to their effective lives.
22 Apr 2024 · 6 min read time
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