From 1 July 2020 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 2020–21 is $59,136.
- 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.
- 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 2020 the LCT threshold will increase to $ $68,740.
- The LCT threshold for fuel efficient cars will increase to $77,565 for the 2020–21 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.
