Many property owners aren’t aware of the beneficial methods they can utilise to maximise their depreciation deductions for qualifying their assets of plant and equipment.¬†One of these methods is low-value pooling, which involves depreciating your assets at an accelerated rate to increase tax deductions. Low-cost assets and low-value assets can be allocated into this pool to maximise your cash return, however, it is important to know the difference:

– A low-cost asset starts its life under $1000.

– A low-value asset may have started its life much higher than the value of $1000 but as it depreciates, if its value falls under $1000, it may be considered a low-value asset.

At Archi-QS we will always include low-value pooling in all our tax depreciation schedules, boosting the cash return earlier for the property owner. It is possible for a claim in a later year to be greater than the available claim in the previous year if there are items whose costs fall below $1000, enabling them to be placed in the low-value pool, where a higher rate of depreciation applies. Furthermore, assets costing (acquisition cost) less than $300 can be immediately deducted