From 1 July 2017 the following car threshold amounts apply.
Luxury Car Tax:
From the beginning of this financial year (July 1 2017) the luxury car tax threshold for luxury cars has been increased to $65,094. Additionally the threshold for fuel efficient luxury cars for the 2017–18 financial year remains at $75,526.
As a general rule the value of a car includes the value of any accessories, parts and/or attachments supplied/imported at the same time as the car.
Goods and Services Tax (GST):
If you purchase a car and the price of the car is more than the car limit, the maximum amount of GST credit you can claim is one-eleventh of the car limit amount.
You are unable to claim a GST credit for any luxury car tax you pay when you purchase a luxury car. This is regardless of how much you use the car in carrying on your business.
Income tax:
There is also an upper limit on the cost you use to work out the depreciation for the business use of your car (including station wagons and four-wheel drives). The car limit for 2017–18 is $57,581. You use the car limit that applies to the year you first use or lease the car.
To discuss further please contact your trusted advisor at Rubiix Business Accountants on (03) 9603 0066