Car depreciation limit for 2012/13
The ATO has advised that the car depreciation limit for the 2012/13 financial year is $57,466 (unchanged from the 2011/12 year).
On 9 July 2012 a taxpayer purchases a motor vehicle for $65,000 wholly for use in carrying on their business.
In working out the vehicle’s depreciation for the 2012/13 income year, the cost of the vehicle for depreciation purposes is basically reduced to $57,466.
Editor: Note, however, that the luxury car tax threshold for 2012/13 (which is used to determine if luxury car tax is payable), has increased to $59,133.