The following car threshold amounts apply from 1 July 2017;
Income Tax
There’s an upper limit on the cost you use to calculate the depreciation for the use of your car or station wagon (including four-wheel drives) for business purposes. You use the car limit that applies to the year when you first either used or leased the car.
The car limit for 2017–18 is $57,581.
Goods and Services Tax (GST)
The maximum amount of GST credit you can claim is one-eleventh of the car limit amount if you purchase a car and the price is more than the car limit.
You cannot claim a GST credit for any luxury car tax you pay when you buy a luxury car, regardless of how much you use the car within your business.
Luxury Car Tax
From 1 July 2017, the luxury car tax threshold for luxury cars increased to $65,094
However, the threshold for fuel efficient luxury cars for the 2017–18 financial year remains at $75,526.
In general, the value of a car includes the value of any parts, accessories or attachments supplied or imported the same time as the car.