car limit depreciation 2023 Page 8797

As tax talk goes, this one’s spicier than it sounds: the ATO car depreciation limit was $64,741 for 2022–23 (year ended 30 June 2023), and $68,108 for 2023–24.

It caps the cost you can depreciate on eligible “cars” (generally under 1 tonne and fewer than 9 seats), and the GST input credit is limited to 1/11th of that cap.

Pay more than the limit? You still claim running costs only to your business-use percentage, but the excess purchase price doesn’t depreciate—tough luck, big spender.

Luxury Car Tax and EV/FBT rules are separate beasts with their own thresholds. Consult official documentation for exact figures.