temporary full expensing car limit 2023 Page 3

Temporary full expensing let businesses immediately deduct eligible assets, but for passenger vehicles there’s a cap: the ATO car limit was $64,741 for 2022–23.

That means even if you paid more, the deductible amount under TFE is limited to that figure (GST credits are similarly limited).

Utes and vans with a payload over 1 tonne or seating for 9+ aren’t “cars” for this rule, so the cap doesn’t bite them.

To qualify, the vehicle had to be first used or installed ready for use by 30 June 2023; ordering one and watching it sit on a boat didn’t count.

Consult official documentation for exact figures.