Luxury Car Depreciation Cost Limit
Cars with a higher value have a ceiling value assigned to them for the purposes of depreciation claims.
When applicable, the depreciation limit applies to cars, station wagons and four wheel drives.
There are exemptions associated with use of vehicles by or for, certain disabled persons, and hearses.
The value limits are indexed annually to the ‘motor vehicle purchase sub-group’ of the CPI. The following depreciation limits apply:
- 2018-19 year $57,581 (TD 2018/6)
- 2017-18 year $57,581 (TD 2017/18)
- 2016-17 year $57,581 (TD 2016/8)
- 2015-16 year $57,466 (TD 2015/16)
- 2014-15 year $57,466 (TD 2014/17)
- 2013-14 year $57,466 (TD 2013/15)
- 2012-13 year $57,466
The limit that applies to each car is the limit applicable for the year in which the car is first used for business purposes.
GST and the car depreciation limit
A car purchased for more than the car depreciation limit has a maximum GST credit of one-eleventh of the limit.
Thus for example in 2013-14, the maximum GST credit would be $5,224 (that is, 1/11 x $57,466). This same limit also applies to cars which are fuel efficient.
Note that the Luxury Car Tax Thresholds are separately determined.
- Depreciation of vehicles
- Depreciation rates
- Car Fringe Benefits
- Car Allowance
- Self Assessment of Depreciation Rates
This page was last modified 2018-05-25