# Car depreciation limit for 2021-22 is $60,733



## Jack Malarkey (Jan 11, 2016)

The car depreciation limit for 2021-22 is $60,733 (up from $59,136 for 2020-21).

The corresponding limit on GST credits for a car is $5,521 in 2021-22 (up from $5,376 in 2020-21). The GST credit limit for cars is one-eleventh of the car depreciation limit.

From the Australian Taxation Office’s small business newsroom:

*Cars and tax*
_Make sure you know the threshold amounts that apply._







www.ato.gov.au

*Cars and tax*












3 June 2021

From 1 July 2021 the following car threshold amounts apply.

Income tax:

There's an upper limit on the cost you use to work out the depreciation for the business use of your car or station wagon (including four-wheel drives). You use the car limit that applies to the year you first use or lease the car.
The car limit for 2021–22 is $60,733.
Goods and services tax (GST):

Generally, if you purchase a car and the price is more than the car limit, the maximum amount of GST credit you can claim is one-eleventh of the car limit amount which in 2020-21 [actually 2021-22!!] is $5,521.
You can't claim a GST credit for any luxury car tax you pay when you purchase a luxury car, regardless of how much you use the car in carrying on your business.
Luxury car tax (LCT):

From 1 July 2021 the LCT threshold will increase to $ $69,152.
The LCT threshold for fuel efficient cars will increase to $79,659 for the 2021–22 financial year.
Remember, the LCT value of a car generally includes, the value of any parts, accessories or attachments supplied or imported at the same time as the car.
Find out about:

Car limit
GST and motor vehicles
Luxury car tax rate and thresholds
When LCT applies


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