July 31, 2012

Luxury Car Depreciation Tax Limits 2013

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Luxury Car Depreciation Tax Limits 2013

Luxury Car Limit for Depreciation purposes

The ATO has released a new taxation determination 2012/16 which states the luxury car tax limit for depreciation purposes in the FY 2012-13 remains at $57,466.

Example

A Melbourne accountant purchases a Mercedes Benz at a value of $75,000 in July 2012. The car is depreciated at a reduced cost base initial value of $57,466.

Luxury car tax threshold

Luxury car tax is the 33% tax imposed on the GST inclusive purchase price of luxury cars over the luxury car tax threshold. The luxury car tax threshold for the 2012-2013 year is $59,133 which was provided for in a luxury car tax determination LCTD 2012/1. This was $57,466 in the 2012 year.

For fuel efficient cars the threshold remains at $75,375.

Contact Hillyer Riches Tax Accounting Firm Melbourne or for more information email travis@hillyerriches.com.au.

This article is for general information only and should not be relied upon without first seeking advice from an appropriately qualified professional.

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