depreciation cost limit 2022 ato Page 7

Chasing the ATO car depreciation cost limit for 2022? For the 2021–22 income year the limit is AUD $60,733, and for 2022–23 it steps up to AUD $64,741—because inflation isn’t just for tyres.

This “car limit” caps the cost you can use for depreciation (and any instant write‑offs/temporary full expensing) on passenger cars under 1 tonne or with fewer than 9 seats. If your shiny chariot cost more, your deduction still maxes out at the limit, and GST/LCT rules do their own separate dance. When in doubt, check the ATO guidance or your accountant before you start doing maths on the bonnet.