2022 depreciation cost limit

Chasing the 2022 car depreciation cost limit without nodding off? For the 2021–22 year (ending 30 June 2022), the ATO car limit is $60,733; for 2022–23 it’s $64,741.

You can only depreciate the business-use portion up to that cap, and your GST claim is capped at 1/11th of the limit—about $5,521 and $5,886 respectively. Even with instant asset write-off or temporary full expensing, cars still hit this ceiling—no writing off a $90k luxo-barge as a “tool.” Vehicles over 1 tonne payload or carrying 9+ passengers usually aren’t treated as “cars” for this rule, but do check the fine print with your tax pro. Consult official documentation for exact figures.