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Low value pool rules

Australia only

The option to pool assets is available when calculating depreciation for Taxation purposes in MYOB Client Accounting - Assets.

Assets allocated to the Low Value Pool will be depreciated at:

  • 18.5% in the year the asset was first added to the low value pool.

  • 37.5% in subsequent years.

Depreciation is calculated for the full financial year/period, regardless of when the asset was added to the pool during the year.

For information on how to create a small business pool or add an asset to the pool, see our topic on Pooled assets.

Low value pool rules

When you create a low-value pool the first time, you choose to allocate low-cost and low-value assets to the pool:

Type of AssetDescription
Low-cost asset

a depreciating asset

  • that has a cost of less than $1,000 at the end of the financial year in which it was first used or, installed ready for use (after GST credits or adjustments).
Low-value asset

a depreciating asset:

  • that has an Opening Adjustable Value for the current year of less than $1,000 (worked out using the diminishing value method), and
  • depreciation in prior years have also been worked out using the diminishing value method.
  • is not a low-cost asset

When you create a low value pool and allocate a low-cost asset to the pool, all other low-cost assets must also be pooled. This applies for the current year and in subsequent years.

This rule however, does not apply to low-value assets. You can decide whether or not to allocate low-value assets to the pool on an asset-by-asset basis.

Once you've allocated an asset to the pool, it must remain there. You can only have one low-value pool at a time, however Assets will allow you to have both a low-value pool AND a small business pool.

Assets with shared ownership

If you have an asset that is held jointly with others, decline in value is worked on using the cost of your share in the asset.

You can allocate your share of the asset to the low-value pool if the opening adjustable value of your share is less than $1,000. See Jointly held depreciating assets on the ATO website for more details.

Ineligible assets

Assets that don't qualify for the low value pool include:

  • assets for which you can claim an immediate deduction (e.g. where the cost is less than $100).
  • assets for which you can claim deductions under the simplified depreciation rules for small business
  • assets for which you previously calculated depreciation using the prime cost method
  • portable electronic devices (including laptops, portable printers, personal digital assistants, calculators, mobile phones and portable GPS navigation receivers), computer software, protective clothing, briefcases and tools of trade, if:  
    • you provided the item to your employee, or
    • you paid for some or all of the cost of the item (or reimbursed your employee for it) and the provision, payment or reimbursement was exempt from fringe benefits tax
  • horticultural plants, including grapevines
  • certain assets you use to conduct research and development activities.

See the ATO for more information.

More information on Low-value pools is available in the ATO's Guide to Depreciating Assets.

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