July 31, 2012
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.
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 email@example.com.
This article is for general information only and should not be relied upon without first seeking advice from an appropriately qualified professional.