The Australian Tax Office has announced the revised cost price depreciation limit on
new cars and used cars for the 2008/2009 income year is $57,180. This is an increase in the limit by $57 from 2007/2008 period.

The car tax threshold for luxury vehicles is the same as the car depreciation limit and
‘Lluxury Cars’ above $57,180 are subject to luxury car tax on the portion of the value of the vehicle exceeding $57,180. The GST Act also limits the input tax credit entitlement for a luxury car to 1/11th of the depreciation limit (i.e. $5,198.18).