Cars and Tax

Posted by Georgia Kirby on Jul 20, 2017 12:07:11 PM

The following car threshold amounts apply from 1 July 2017;

Income Tax

There's an upper limit on the cost you use to calculate the depreciation for the use of your car or station wagon (including four-wheel drives) for business purposes. You use the car limit that applies to the year when you first either used or leased the car.

The car limit for 2017–18 is $57,581.


Goods and Services Tax (GST)

The maximum amount of GST credit you can claim is one-eleventh of the car limit amount if you purchase a car and the price is more than the car limit.

You cannot claim a GST credit for any luxury car tax you pay when you buy a luxury car, regardless of how much you use the car within your business.


Luxury Car Tax

From 1 July 2017, the luxury car tax threshold for luxury cars increased to $65,094

However, the threshold for fuel efficient luxury cars for the 2017–18 financial year remains at $75,526.

In general, the value of a car includes the value of any parts, accessories or attachments supplied or imported the same time as the car.


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