Luxury Car Tax Limit 2018/19

From 1 July 2018 the tax thresholds for Luxury Cars are:

'Standard' luxury cars (increased to) $66,331
'Fuel efficient' luxury cars remains at $75,526

Vehicles that have a fuel consumption that does not exceed 7 litres per 100 klms is classed as "fuel efficient" under the vehicle standards in force under section 7 of the Motor Vehicle Standards Act 1989

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

The Luxury Car Tax is different to the Car Depreciation Limit, which is used for calculation of tax deduction claims for “decline in value”.

The current Car Depreciation Limit is $57,581. This means that the maximum GST Input Tax Credit (ITC) on motor cars is limited to $5,234.63 (which is 1/11th  of the Car Depreciation Limit).

For further information on tax rates and thresholds, visit the following ATO links:

https://www.ato.gov.au/Rates/Luxury-car-tax-rate-and-thresholds

https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/in-detail/depreciating-assets/simplified-depreciation---rules-and-calculations/?page=3#Car_cost_limit_for_depreciation

Need more information? Contact us and we'll be happy to answer any questions or provide further details.

We can help you determine a preferred finance structure that meets ATO guidelines and explain how it works and relates to your circumstances.

Call us today on (03) 9005-6633 and experience the difference!