Car Depreciation – Buying a car before 30 June 2017?

Car Depreciation – Buying a car before 30 June 2017?

Under Tax Determination 2016/8, the car limit is $57,581 for the 2016/17 (up from $57,466 for the previous year). This amount limits depreciation and GST input tax credit claims.

As the indexation factor was less than 1, the car limit for the current year has not been indexed and remains the same as last year.

In July 2016, Laura buys a car to which the car limit applies for $60,000 to use in carrying on her business. As Laura started to hold the car in the 2016/17 financial year, in working out the car’s depreciation for the 2016/17 income year, the cost of the car is reduced to $57,581.

Should you have any queries in regards to the above article, please do not hesitate to contact our office on
02 4958 1829 or email our Client Support Manager on

Share "Car Depreciation – Buying a car before 30 June 2017?" via

More in 2015 Archive
May 8, 5 months ago

Our app has been updated to include a COVID-19 Resource Kit!

As your accountant, it’s our job to ensure your business stays informed, compliant and tax efficient, and with this in mind we have recently updated the David O’Brien and Associates mobile app. The app is completely free of charge to you as one o…

Read   Comments are off
Apr 15, 6 months ago

The JobKeeper Payment – 50 Questions & Answers

On 8 April 2020, the Federal Government passed a package of Bills through both Houses of Parliament (which received Royal Assent on 9 April 2020) to give effect to (amongst other things) the JobKeeper Scheme. Subsequent to this, a Legislative Instrum…

Read   Comments are off
Apr 9, 6 months ago

COVID-19 – Temporary Amendments to the Clerks Award

Last week we received communication from Turnbull Hill Lawyers, one of our trusted local lawyers regarding The Fair Work Commission recently approving an urgent change to the Clerks-Private Sector Award 2010 (Clerks Award). The change is the insertio…

Read   Comments are off