By BMTQS | www.bmtqs.com.au | Submitted May 2009 A low value pool exists providing investors the benefit of pooling items that meet either of the following classifications: Low Cost Pool - A low cost asset is a depreciable asset that has a cost of less than $1000 in the year of acquisition. Low Value Pool - A low value asset is a depreciable asset that has an un-deducted value of less than $1000. That is, the cost of an asset is greater than $1000 in the year of acquisition but the value remaining after depreciating over time (opening value less deductions in year 1 less deductions in year 2 etc) is now less than $1000. Assets meeting both these classifications can be placed in an itemised pool. Pooling is used in conjunction with the diminishing value method to maximise deductions in the initial years of the depreciation schedule.
