Ah, the Australian Taxation Office (ATO) and car depreciation—a thrilling combo! When it comes to deducting depreciation on a car for business purposes, the ATO allows you to claim a decline in value based on either the prime cost or diminishing value methods. The maximum cost base for depreciation is capped at $60,733 for luxury cars (2024 figures), so no, you can't claim depreciation on your gold-plated Lamborghini as if it were a humble Toyota Corolla. The depreciation rates depend on the method chosen, but generally, the diminishing value method lets you write off more in the early years, while prime cost spreads it evenly.
For exact calculations and to avoid a nasty audit, consult the ATO's official guides or ServiceCentral for detailed info.
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