vehicle cost limit 2023 Page 21

In Australia, the “vehicle cost limit” for tax depreciation on cars was $64,741 for the 2022–23 income year. For 2023–24 it rose to $68,108, because inflation never takes a day off. It applies to cars designed to carry less than 1 tonne and fewer than 9 passengers; anything pricier than the limit can’t be depreciated beyond that cap (and GST credits are capped to it too). This is separate from Luxury Car Tax thresholds, which are a different barrel of laughs altogether. As ever, chat to your accountant or check the ATO before you spend like a touring rock band.