maximum car depreciation 2023 Page 8844

In Australia, the ATO caps how much of a passenger vehicle’s cost you can depreciate: the 2022–23 car limit is AUD $64,741.

You can’t claim depreciation on any amount above that cap, and you still apply your business-use percentage to the depreciable amount.

Choose prime cost or diminishing value as your method, but the cap still bites; luxury car tax, rego and insurance aren’t depreciable.

For 2023–24 the cap is AUD $68,108; when in doubt, ask your accountant, because the ATO is less forgiving than a parking inspector.