Car Depreciation Cost Limit
Cars with a higher value have a ceiling value assigned to them for the purposes of depreciation claims.
Depreciation (“decline in value”) claims for Work Related Car Expenses may only be included in the ‘log book’ claim method.
Prior to 1 July 2015 the ‘one-third of actual expenses’ was also available as a claim method.
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:
- 2023-34 year $68,108 (indexation 435.5 ÷ 413.8)
- 2022-23 year $64,741 (indexation 413.8 ÷ 388.1)
- 2021-22 year $60,733 (indexation 388.1 ÷ 377.9)
- 2020-21 year $59,136 (indexation 377.9 ÷ 368.1)
- 2019-20 year $57,581 (indexation 368.1 ÷ 373.0)
- 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)
See also: depreciation of vehicles
Car depreciation cost limits – earlier years
| year | value |
|---|---|
| 2011-12 | $57,466 |
| 2010-11 | $57,466 |
| 2009-10 | $57,180 |
| 2008-09 | $57,180 |
| 2007-08 | $57,123 |
| 2006-07 | $57,009 |
| 2005-06 | $57,009 |
| 2004-05 | $57,009 |
| 2003-04 | $57,009 |
| 2002-2003 | $57,009 |
| 2001-2002 | $55,134 |
| 2000-2001 | $55,134 |
| 1999-2000 | $55,134 |
| 1998-99 | $55,134 |
| 1997-98 | $55,134 |
| 1996-97 | $55,134 |
| 1995-96 | $52,912 |
| 1994-95 | $51,271 |
| 1993-94 | $48,415 |
| 1992-93 | $47,280 |
| 1991-92 | $45,462 |
| 1990-91 | $45,056 |
| 1989-90 | $42,910 |
| 1988-89 | $39,331 |
| 1987-88 | $34,775 |
| 1986-87 | $29,646 |
| 1985-86 | $26,660 |
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 2023-24, the maximum GST credit would be $6,191 (that is, 1/11 x $68,108). This same limit also applies to cars which are fuel efficient.
Note that the Luxury Car Tax Thresholds are separately determined.
See also
- Depreciation of vehicles
- Depreciation rates
- Car Fringe Benefits
- Car Allowance
- Self Assessment of Depreciation Rates
This page was last modified 2023-06-02