car buying private or business

Changes to car thresholds from 1 July

The following car threshold amounts will apply for the 2024–25 financial year.

Income tax

  • The car limit for 2024–25 is $69,674. This is the highest value you can use to calculate depreciation on a car where both of the following apply:
    • you use the car for business purposes
    • you first use or lease the car in the 2024–25 income year.
  • As a business owner, you can claim a tax deduction for expenses for motor vehicles you use for business purposes.
  • If you use a motor vehicle for both business and private purposes, you can only claim a deduction for the business part. You must be able to show the percentage you claim as business use and have records to support your claim.

Goods and services tax (GST)

  • If you buy a car and the price is more than the car limit, the maximum GST credit you can claim (except in certain circumstances) is one-eleventh of the car limit. For the 2024–25 income year, the maximum GST credit you can claim is $6,334 (that is, 1/11 × $69,674).
  • You can’t claim a GST credit for any luxury car tax you pay when you buy a luxury car, even if you use it for business purposes.

Luxury car tax (LCT)

  • The LCT threshold for 2024–25 is:
    • $91,387 for fuel-efficient vehicles. This is in line with an increase to the motor-vehicle purchase sub-group of the Consumer Price Index (CPI)
    • $80,567 for all other luxury vehicles, in line with an increase in the ‘All Groups’ CPI.

If you’re looking to buy a luxury car, remember to be cautious of those who offer to buy one from a dealer on your behalf at a discount. This may be a scheme to evade LCT. You may be at risk if they don’t have the right insurance or if the car is damaged or defective.

To find out more about LCT, including when you need to apply it and what’s included in the LCT value of a car, visit the Luxury car tax page on the ATO’s website.

CONTACT ALLAN HALL BUSINESS ADVISORS

ipad logbook

2024 FBT Motor Vehicle Declarations

Fringe Benefits Tax (FBT) Motor Vehicle Declarations due

Form/s must be submitted to Allan Hall’s office by 30 April 2024

The Australian Taxation Office requires all companies and trusts that have motor vehicles to keep odometer records of the total kilometres travelled during the year.

As the Fringe Benefits Tax year ends on 31 March, the odometer readings on each vehicle should be recorded at 31 March 2024.

Please use our form below to submit your odometer reading to us:

  • a separate declaration should be prepared for each vehicle, and
  • please retain a copy of the information for your own records.
MOTOR VEHICLE DECLARATION QR CODE
Or scan this code on a phone or tablet to access our form.

The form/s must be submitted to our office by 30 April. Should you have any queries please contact our Tax and Accounting Team in Brookvale on 02 9981 2300.

CONTACT ALLAN HALL

ipad logbook

2023 FBT Motor Vehicle Declarations

Fringe Benefits Tax (FBT) Motor Vehicle Declarations due

Form/s must be submitted to Allan Hall’s office by 30 April 2023

The Australian Taxation Office requires all companies and trusts that have motor vehicles to keep odometer records of the total kilometres travelled during the year.

As the Fringe Benefits Tax year ends on 31 March, the odometer readings on each vehicle should be recorded at 31 March 2023.

Please use our form below to submit your odometer reading to us:

  • a separate declaration should be prepared for each vehicle, and
  • please retain a copy of the information for your own records.
MOTOR VEHICLE DECLARATION QR CODE
Or scan this code on a phone or tablet to access our form.

The form/s must be submitted to our office by 30 April. Should you have any queries please contact our Tax and Accounting Team in Brookvale on 02 9981 2300.

CONTACT ALLAN HALL

ipad logbook

2022 FBT Motor Vehicle Declarations

Fringe Benefits Tax (FBT) Motor Vehicle Declarations due

Form/s must be submitted to Allan Hall’s office by 30 April 2022

The Australian Taxation Office requires all companies and trusts that have motor vehicles to keep odometer records of the total kilometres travelled during the year.

As the Fringe Benefits Tax year ends on 31 March, the odometer readings on each vehicle should be recorded at 31 March 2022.

Please use our form below to submit your odometer reading to us:

  • a separate declaration should be prepared for each vehicle, and
  • please retain a copy of the information for your own records.
MOTOR VEHICLE DECLARATION QR CODE
Or scan this code on a phone or tablet to access our form.

The form/s must be submitted to our office by 30 April. Should you have any queries please contact our Tax and Accounting Team in Brookvale on 02 9981 2300.

CONTACT ALLAN HALL

ipad logbook

FBT Motor Vehicle Declarations

Fringe Benefits Tax (FBT) Motor Vehicle Declarations due

The Australian Taxation Office requires all companies and trusts that have motor vehicles to keep odometer records of the total kilometres travelled during the year.

As the Fringe Benefits Tax year ends on 31 March 2021, the odometer readings on each vehicle should be recorded at 31 March 2021.

Please use our form below to submit your odometer reading to us:

  • a separate declaration should be prepared for each vehicle, and
  • please retain a copy of the information for your own records.
MOTOR VEHICLE DECLARATION QR CODE
Or scan this code on a phone or tablet to access our form

The form/s must be submitted to our office by 30 April. Should you have any queries please contact our Tax and Accounting Team on 02 9981 2300.

CONTACT US