Who can claim
This deduction is available to individuals and companies.
- The taxpayer is a small business entity that validly uses the simplified-depreciation rules for the income year.
- The asset is allocated to the general small-business pool because it is not immediately deductible and is not excluded from simplified depreciation.
What you cannot claim
- You cannot selectively apply only preferred elements of the simplified-depreciation rules.
- Private use must be excluded when an asset enters the pool.
- Assets excluded from simplified depreciation, such as capital works and certain primary-production assets, do not enter this pool.
How the amount is worked out
Deduct 15% of the taxable-use portion of assets first added to the pool during the year and 30% of the opening pool balance and later-year pooled amounts. Subtract the taxable-use portion of termination values, including disposal proceeds, from the pool. If the adjusted pool balance is below the instant-asset-write-off threshold enacted for that income year, deduct the remaining balance under the low-pool-value rule.
Records the ATO expects
- Asset register
- Opening pool balance
- Addition dates and taxable-use percentages
- Termination values and disposal dates
- Pool worksheet
- Business-use calculation
Before you rely on this rule
Opening balance, additions, disposals, private use and the enacted threshold for the selected year determine the pool deduction.
Where this rule comes from
Primary source: Income Tax Assessment Act 1997 Subdivision 328-D (Compilation 266 in force 1 July 2026). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- ATO simpler depreciation for small business (ATO guidance accessed 30 July 2026)
- ATO guide to depreciating assets 2025 (Guide to depreciating assets 2025)
- ATO instant asset write-off (Updated 7 July 2025)