ato car cost limit 2023

The ATO’s car cost limit was $64,741 for the 2022–23 income year and increased to $68,108 for 2023–24. This cap is the most you can use to calculate car depreciation for tax, and it also limits the GST input credit (to 1/11th of the cap if you’re registered). It doesn’t fiddle with your stamp duty or rego, and it’s not the same thing as the Luxury Car Tax thresholds—different tent, different clowns. If your chariot cost more than the cap, you can only claim up to the limit; turning up the exhaust won’t turn up the deduction. For belt-and-braces accuracy, speak to your accountant or check the ATO directly.