motor vehicle depreciation rate 2022 ato

Looking up the ATO’s motor vehicle depreciation settings for 2022? For passenger cars, the ATO’s standard effective life is usually 8 years, which works out to 12.5% (prime cost) or 25% (diminishing value) per year. In 2021–22 the car depreciation limit was about AUD 60,733, so that’s the maximum cost base you can depreciate on a car, no matter how flashy the badge. Utes and people-movers with a payload over 1 tonne or seating for 9+ aren’t capped by the car limit. Eligible businesses also had temporary full expensing in 2021–22, but passenger cars were still constrained by that cap—no magic wand there. Run the sums, pick your method, and try not to depreciate your sanity along the way. Consult official documentation for exact figures.