Updated Car Limits
There are updated car threshold amounts from 1 July as follows;
- Income Tax
- The car limit for 2021-22 is $60,733
- This means that the upper limit on the cost you use to calculate depreciation for the business use is $60,733 if the car was purchased in the 2021-22 year
- Goods and services tax (GST):
- If you purchase a car, the maximum amount of GST you can claim is one-eleventh of the car limit, which amounts to $5,521 in the 2021-22 year. This applies even if the cost of the car exceeds the car limit
- You cannot claim GST credit for any luxury car tax, regardless of the business % usage.
- Luxury Car Tax (LCT):
- The threshold for LCT has increased to $69,152 from 1 July 2021
- For fuel efficient cards, the threshold has increased to $79,659 for the 2021-22 financial year
- Note that the value of the car generally includes parts, accessories and attachments supplied or imported at the same time
Please do not hesitate to contact one of your trusted advisors at Cordner Advisory should you need further assistance.
Cordner Advisory - Your Business Advisory, Accounting & Tax Specialists. Catering for clients all across Australia, from the golden beaches of the Gold Coast and Sunshine Coast to the capital cities such as Brisbane, Sydney and Melbourne