CAR LIMIT ANNOUNCED
The ATO has just released Tax Determination TD 2015/16 announcing the car limit for 2015/2016. The car limit remains unchanged at $57 466. This limit is relevant for working out the depreciation and GST claims on cars. Note it is not relevant for the purposes of Luxury Car Tax; which is a separate threshold.
The GST credit available on the acquisition of a business car is limited if the market value of the car, including any luxury car tax and GST, exceeds the car limit which applies for the financial year in which you start to use the car for any purpose. Where this is the case, the GST credit is limited to 1/11th of the applicable car limit. The limit applies to ‘cars’ (broadly, vehicles designed to carry a load of less than one tonne and fewer than nine passengers – motor cycles are excluded):