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Re: Small Business Pool Balance

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Hi All,

Just wondering if you could help on the following scenario:

 

A small business entity bought a machinery worth Aud 89,000 which was available for use on 12/11/2019. Since at the time the equipment was bought the instant asset write off treshold was Aud 30,000, it was allocated to a small business pool.

Given the balance of the pool before any deductions at 30/06/2020 was Aud 102,000 and given the instant asset write off treshold was increased to Aud 150,000 on 12/03/2020; is it correct to write off the whole pool balance (Aud 102,000) in the FY 19/20?

 

Thanks

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ATO Community Support

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Hi @Cardis

 

 

Correct. Small businesses can deduct the balance of the small business pool at the end of the income year if the balance at that time (before applying the depreciation deductions) is less than the instant asset write-off threshold. Example 2 on our website is a similar situation to yours.

 

Thanks, Ari

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Most helpful response

ATO Community Support

Replies 0

Hi @Cardis

 

 

Correct. Small businesses can deduct the balance of the small business pool at the end of the income year if the balance at that time (before applying the depreciation deductions) is less than the instant asset write-off threshold. Example 2 on our website is a similar situation to yours.

 

Thanks, Ari