Luxury Car Limit for Depreciation purposes
The luxury car tax limit for depreciation purposes under section 40-230 of the Income Tax Assessment Act 1997 for the FY 2017-18 is $57,581. This limit also applies for depreciation purposes to fuel efficient cars.
A Caulfield accountant purchases a hybrid Mercedes Benz at a value of $75,000 in July 2017. The car is depreciated at a reduced cost base initial value of $65,094.
Luxury car tax threshold
Luxury car tax is the 33% tax imposed on the GST inclusive purchase price of luxury cars over the luxury car tax threshold. The luxury car tax threshold for the 2017-18 year is $65,094 which was provided for in a luxury car tax determination LCTD 2017/1.
For fuel-efficient cars the threshold remains at $75,526.
Contact Hillyer Riches Tax Accounting Firm Caulfield or for more information email firstname.lastname@example.org.
This article is for general information only and should not be relied upon without first seeking advice from an appropriately qualified