Who can claim
This deduction is available to individuals and companies.
- The amount is a qualifying project amount connected with a project carried on for a taxable purpose.
- The expenditure is not part of the cost of a depreciating asset and is not otherwise deductible.
- The project has started to operate or an abandonment, sale or other statutory event permits a deduction.
What you cannot claim
- Do not pool private, capital acquisition or asset-cost amounts that fail the qualifying-project rules.
- Do not claim the same expenditure under another deduction or capital-allowance provision.
How the amount is worked out
For a project that operates, use 150% divided by project life for an ordinary project pool. Use 200% divided by project life only for an eligible project amount first allocated after 9 May 2006. Apply the relevant rate to the pool value, then apply abandonment, disposal, recoupment and foreign-exchange adjustments.
Records the ATO expects
- Project expenditure ledger
- Project-life estimate
- Project start and cessation evidence
- Foreign-exchange calculation
Before you rely on this rule
Project start, project life, recoupments and abandonment can materially change the amount.
Where this rule comes from
Primary source: Income Tax Assessment Act 1997 section 40-830 (Section 40-830 project pools). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- Income Tax Assessment Act 1997 section 40-832 (Section 40-832 project-pool rate)
- ATO TR 2005/4 project pools (TR 2005/4)