car cost limit 2023 ato

The ATO’s car cost limit caps how much of a passenger vehicle’s price you can claim for depreciation and GST credits—no, the taxman doesn’t care about your sunroof.

For 2022–23 it was $64,741, and for 2023–24 it’s $68,108 (AUD).

That means depreciation is limited to those figures, and the maximum GST input credit is about $5,886 in 2022–23 or $6,191 in 2023–24.

This is separate from the Luxury Car Tax thresholds and generally applies to passenger cars, including many SUVs and utes used for business.

Speak to your accountant for your exact situation, but those numbers will keep the ATO’s eyebrow from doing aerobics.