The car cost depreciation limit is the maximum value that can be assigned to a vehicle for the purpose of a depreciation claim.

Applying car cost limit will auto calculate the tax exemption.

Note: If need to depreciate to 100%, use immediate write off

This article will help you on how to record your car if it exceeds the car cost limit set by the ATO

First, visit the ATO for the cost limit rule. Learn more.

Note, cost limit is an INCLUSIVE VALUE

Therefore, if the car is purchased inclusive of GST, -

ATO link for Instant write-off and the car limit


See below calculation and difference if with or without GST and "applying car cost limit"

Example 1. MV was purchased 1 Jul 2019, with NO GST registered.


***$57,581 is the yearly car limit for 18-19 year, as per the ATO. Learn more

Example 2: MV was purchased 1 Jul 2019, both "Car Cost Limit" and Registered for GST" were ticked.


The registered with GST, shows the correct calculation, car cost limit applied accordingly.




ATO link

Car cost limit

Instant write-off and the car limit