If you choose to stop using simplified depreciation rules or become ineligible to use them, you will start to work out deductions for new depreciating assets you acquired using the general depreciation rules or more specific rules if they apply.

For depreciating assets already in your small business pool:

• continue to claim a 30% deduction each year until the pool balance falls below the instant asset write-off threshold
• then deduct the remaining pool balance.

You cannot:

• add more assets to your small business pool
• claim an instant asset write-off for any new assets under these rules
• claim a deduction under the general depreciation rules for assets that remain in your small business pool.

You must notify the ATO of your choice to stop using simplified depreciation rules by lodging your tax return. You do not need to lodge any other form to notify of your choice. You still need to keep your depreciation records for 5 years.