Tax Limits for Cars

FOR 2022-2023 FINANCIAL YEAR

Luxury Car Tax & Car Cost Depreciation Limits are determined by the Australian Taxation Office and reviewed annually.

For FY23, the following thresholds apply from 1-Jul-2022:

FY23 Luxury Car Tax & Car Cost Depreciation Limit

Luxury Car Tax (LCT) and Car Cost Depreciation Limit thresholds are determined by the Australian Taxation Office and reviewed annually.

For FY23, the following thresholds now apply to the Equipment Finance Lease (Finance and Novated) product:

FY24 Luxury Car Tax & Car Cost Depreciation Limit

Luxury Car Tax (LCT) and Car Cost Depreciation Limit thresholds are determined by the Australian Taxation Office and reviewed annually.

For FY24, the following thresholds now apply to the Equipment Finance Lease (Finance and Novated) product:

Category	FY23	FY24
Luxury Car Tax (Fuel efficient vehicles)	$84,916	$89,332
Luxury Car Tax (Other vehicles)	$71,849	$76,950
Car Cost Depreciation Limit	$64,741	$68,108
GST Input Tax Credit Limit	$5,885	$6,191

DriveOnline has been updated to reflect these figures.

Further information:
Please contact your local Business Development Manager or Relationship Executive.

Category	FY23	FY24
Luxury Car Tax (Fuel efficient vehicles)	$84,916	$89,332
Luxury Car Tax (Other vehicles)	$71,849	$76,950
Car Cost Depreciation Limit	$64,741	$68,108
GST Input Tax Credit Limit	$5,885	$6,191

DEPRECIATION for 2023-24

Maximum value for calculating depreciation is $68,108
Calculated on the business use of a car first used, or leased, in the 2023–24 income year.

GST for 2023-24

Maximum GST to claim as Input Tax Credit (ITC) for 2022-23 is $6,191 (one eleventh of the car limit)
No GST credit can be claimed for any Luxury Car Tax (LCT) when purchasing a luxury car, regardless of how much you use the car in carrying on your business.

LUXURY CAR TAX (LCT) for 2023-24

For 'Standard' luxury cars: Maximum value for calculating depreciation is $76,950
For 'Fuel efficient' luxury cars: Maximum value for calculating depreciation $89,332
The LCT value of a car generally includes the value of any parts, accessories or attachments supplied or imported at the same time as the car.
Cars with a luxury car tax (LCT) value over the LCT threshold attract an LCT rate of 33%.

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

Need more information?

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

Tax Limits for Cars

FOR 2022-2023 FINANCIAL YEAR

Luxury Car Tax & Car Cost Depreciation Limits are determined by the Australian Taxation Office and reviewed annually.

Need more information?

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