#EveryoneNeedsaPlan: Car Limit Increases for the 2025 FY

From 1 July 2024 until 30 June 2025 the maximum claimable depreciation for motor vehicles has increased to $69,674

• The limit for the 2024 FY was $68,108
• If your vehicle purchase price is higher than the limit, the initial depreciation calculation is based on the purchase price or the limit, whichever is lower
• If the buyer of a vehicle is registered for GST then the limit excludes GST - if not, then the limit includes GST
• The personal use portion of the asset cannot be included in the depreciation calculation - e.g., $50,000 depreciable component with 10% personal use, depreciation is calculated on $45,000
•  The rate of depreciation varies, depending on the method utilised
• Developing an effective vehicle depreciation strategy to maximise deductions is complex, so if you need help please don't hesitate to get in touch with us