Who can claim
This deduction is available to individuals and companies.
- You retain a balance in a valid small-business general pool after ceasing the business, ceasing to be a small business entity or ceasing to choose the simplified depreciation rules.
- The simplified-depreciation rules continue to permit a deduction for the pool balance.
What you cannot claim
- Do not claim assets or pool amounts already written off or transferred.
- Disposal proceeds and balancing events must be reflected in the pool calculation.
How the amount is worked out
Continue the applicable small-business pool calculation, including disposal proceeds and any low-pool-value write-off available under the enacted rules.
Records the ATO expects
- Pool worksheet
- Business or small-business-status change records
- Asset disposals
- Prior-year tax return
Where this rule comes from
Primary source: Income Tax Assessment Act 1997 section 328-220 (Sections 328-190 to 328-220). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.