,000** (low-cost assets) or assets that have been depreciated so their value is now under ,000 (low-value assets). Instead of calculating individual depreciation for each small item, you depreciate the entire 'pool' at a set rate: - **18.75%** in the first year (regardless of when you bought the asset). - **37.5%** for every year after that. This simplifies your bookkeeping. However, if you are a small business using "}}]}

What is a Low-Value Pool for depreciation in Australia?

A Low-Value Pool allows you to group together assets that cost less than **$1,000** (low-cost assets) or assets that have been depreciated so their value is now under $1,000 (low-value assets). Instead of calculating individual depreciation for each small item, you depreciate the entire 'pool' at a set rate: - **18.75%** in the first year (regardless of when you bought the asset). - **37.5%** for every year after that. This simplifies your bookkeeping. However, if you are a small business using the simplified depreciation rules (like the Instant Asset Write-Off), you usually use the 'Small Business Pool' instead, which has different rules.

  • For assets costing between $300 and $1,000
  • Simplifies depreciation by grouping items
  • 18.75% first year, 37.5% subsequent years
  • Optional, but must be used consistently once chosen
  • Not usually needed if using 'Instant Asset Write-Off'