The Australian Taxation Office (ATO) recently announced that from 1 July 2017 the following car threshold amounts apply.
The ATO informs that there is an upper limit on the cost you use to calculate the depreciation for business use of your vehicle. It advices that people should use the car limit that applies to the year the car is first used or leased. The car limit for the financial year 2017-18 is $57,581.
For cars purchased with the price exceeding the car limit, the maximum amount of GST credit that can be claimed is one-eleventh of the car limit amount.
The ATO states that you cannot claim a GST credit for any luxury car tax you pay when purchasing a luxury car. This is regardless of how much the car is used for business purposes.
The luxury car tax threshold has now increased to $65,094 and the threshold for fuel-efficient luxury cars for the new financial year remains at $75,526.
For more information, visit the ATO website here.