Who can claim
This deduction is available to individuals.
- The assets are used to produce assessable income and are allocated to a low-value pool.
- A low-cost asset costs less than $1,000. A low-value asset has an opening adjustable value below $1,000 under the diminishing-value method.
- If you choose to pool a low-cost asset, you allocate all later low-cost assets to the same pool.
What you cannot claim
- An asset costing $300 or less that qualifies for an immediate deduction is not added to the pool.
- Do not use the pool for assets that are subject to a different depreciation regime or for a cost already claimed elsewhere.
- Do not also claim the same decline in value at a work-expense or rental-property label.
- From 2026-27, a new asset expected to be used mainly to produce labour income cannot be allocated to a low-value pool. Assets already in the pool remain subject to the pool rules.
- Do not pool an item your employer or another party provided, paid or reimbursed; a partial reimbursement reduces its eligible cost.
- A taxable allowance does not make an otherwise ineligible asset poolable.
How the amount is worked out
For 2025-26, generally apply 37.5% to the eligible opening pool balance and qualifying low-value assets, plus 18.75% to qualifying low-cost assets and eligible additions allocated during the year. For 2026-27, continue the existing pool calculation but do not add a new asset expected to be used mainly to earn labour income.
Records the ATO expects
- Low-value pool worksheet
- Asset invoices and adjustable-value records
- Taxable-use and disposal calculations
Where this rule comes from
Primary source: Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Act No. 49, 2026 — latest compilation). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.