Motor vehicle with cost higher than the car limit and applying GST

Modified on: Sun, 28 Aug, 2022 at 5:26 PM

Question: How GST applies for Motor Vehicle with higher than the car limit?

Solution:

ie, For GST registered, it is $52,346 since the GST of $523.60 will be reported to ATO as GST. This GST amount is not depreciating.

While, if not registered for GST, all of the amount should be recognized as depreciable asset which is $57,581.

If you want to writeoff:

Record the car cost limit of $59,136 as General Pool. This will be automatically written off at the end of the FY.

Then set up a new asset for the remaining $3,864.

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