car limit for 2023 Page 17

In Australia, the ATO’s car depreciation “car limit” for 2022–23 is $64,741, and for 2023–24 it’s $68,108.

That’s the maximum cost you can use to calculate depreciation on a car; if you’re GST‑registered, your input tax credit is capped at 1/11th of the limit (about $5,885 for 2022–23 and $6,191 for 2023–24).

Don’t confuse it with Luxury Car Tax thresholds: in 2023–24 they’re $76,950 (standard) and $89,332 (fuel‑efficient)—a different beast entirely.

If you meant calendar 2023, those two financial years straddle it nicely; use the one matching your purchase date. And yes, run it past your accountant before the ATO runs past you.