{"id":9385,"date":"2024-08-16T18:03:02","date_gmt":"2024-08-16T08:03:02","guid":{"rendered":"https:\/\/ph.trdemo.com.au\/rogersonkenny\/?p=9385"},"modified":"2024-12-12T21:10:57","modified_gmt":"2024-12-12T10:10:57","slug":"car-depreciation-limit-2024-2025-financial-year","status":"publish","type":"post","link":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/car-depreciation-limit-2024-2025-financial-year\/","title":{"rendered":"Car Depreciation Limit 2024 2025 Financial Year"},"content":{"rendered":"[vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text text_direction=”default”]\r\n

Car<\/span> Tax Thresholds <\/span>2025 Financial Year<\/span><\/h1>\r\n

With car thresholds changing each and every year, it is important as a business owner to understand the current car tax thresholds to maximise your deductions and make that ever important motor vehicle purchasing decision.\u00a0<\/span>\u00a0<\/span><\/p>\r\n

From 1 July 2024 for the 2025 financial year, new thresholds have been announced for business use motor vehicles relating to income tax, GST and Luxury car tax.\u00a0<\/span>\u00a0<\/span><\/p>\r\n

This article assumes that the motor vehicle is a passenger car and not a commercial vehicle or truck. This article does not apply to a commercial vehicle.\u00a0<\/span>\u00a0<\/span><\/p>\r\n


\r\n<\/p>\r\n

Car Thresholds for Income Tax<\/span><\/span><\/h2>\r\n

For the 2024-25 financial year, the car limit is $69,674. This is the highest value you can use to calculate the depreciation on a car that is used for business purposes when you first use or lease the car in the 2024-25 financial year.\u00a0<\/span>\u00a0<\/span><\/p>\r\n

Business owners can claim a tax deduction for expenses (including depreciation) on a business use motor vehicle.<\/span>\u00a0<\/span><\/p>\r\n

If your motor vehicle is used for part business and part private use, you can only claim a tax deduction for the business use portion. You need to keep records (such as a log book) to support your claim.\u00a0<\/span>\u00a0<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][divider line_type=”Full Width Line” line_thickness=”5″ divider_color=”extra-color-3″ custom_height=”10px”][vc_column_text text_direction=”default”]\r\n

Your Car and Goods and Services Tax (GST)<\/span><\/span><\/h2>\r\n

If you buy a car (new or used) and the price is more than the car limit of $69,674, the maximum GST credit you can claim on the car is one eleventh of the car limit. That means for the 2024-25 financial year, the maximum GST credit you can claim is $6,334.\u00a0<\/span>\u00a0<\/span><\/p>\r\n

Further, it is important to note that you can\u2019t claim a GST credit for any luxury car tax you pay when you buy a luxury car, even if the motor vehicle is used for business purposes.\u00a0<\/span>\u00a0<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][divider line_type=”Full Width Line” line_thickness=”5″ divider_color=”extra-color-3″ custom_height=”10px”][vc_column_text text_direction=”default”]\r\n

Luxury Car Tax (LCT)<\/span><\/span><\/h2>\r\n

The luxury car tax threshold for the 2024-25 financial year is $91,387 for fuel efficient vehicles.<\/span>\u00a0<\/span><\/p>\r\n

For all other luxury vehicles, the threshold is $80,567.\u00a0<\/span>\u00a0<\/span><\/p>\r\n

For more information on Luxury Car Tax, please visit the <\/span>ATO Website.<\/a>\u00a0<\/strong>[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”full_width_background” full_screen_row_position=”middle” column_margin=”default” equal_height=”yes” column_direction=”default” column_direction_tablet=”column_reverse” column_direction_phone=”row_reverse” bg_color=”#f6f6f6″ scene_position=”center” top_padding=”70″ bottom_padding_tablet=”50″ top_padding_phone=”40″ bottom_padding_phone=”50″ text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”slight-zoom-out-reveal” shape_type=”” gradient_type=”default”][vc_column column_padding=”padding-2-percent” column_padding_tablet=”no-extra-padding” column_padding_phone=”no-extra-padding” column_padding_position=”bottom-left” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” el_class=”help_right_col” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”2\/3″ tablet_width_inherit=”default” animation_type=”default” enable_animation=”true” animation=”grow-in” animation_easing=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][vc_custom_heading text=”Best Tax Minimisation Strategies,
\r\n20 Effective Tax Strategies for Australian Businesses” font_container=”tag:h2|text_align:left|color:%23495a6f” use_theme_fonts=”yes” css_animation=”none”][vc_column_text css_animation=”none” el_class=”help_list”]Tax planning and by extension, minimising or deferring tax, is a critical aspect of running a successful business in Australia.[\/vc_column_text][vc_column_text css_animation=”none” el_class=”help_list”]By implementing effective tax strategies, businesses can optimise their financial position, minimise or defer tax liabilities, and ensure compliance with ever-evolving tax laws.[\/vc_column_text][vc_column_text css_animation=”none” el_class=”help_list”]In this checklist, we outline 20 key tax strategies that businesses should consider implementing to minimise or defer their tax and mitigate risks. Including how to reduce Capital Gains Tax Australia.[\/vc_column_text][vc_raw_html]JTNDZGl2JTIwY2xhc3MlM0QlMjJrYXJ0cmFfb3B0aW5fY29udGFpbmVyYTRmMjM2NzBlMTgzM2YzZmRiMDc3Y2E3MGJiZDVkNjYlMjIlM0UlM0MlMkZkaXYlM0U=[\/vc_raw_html][vc_raw_js]JTVCd3Bjb2RlJTIwaWQlM0QlMjI4OTUxJTIyJTVE[\/vc_raw_js][\/vc_column][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/3″ tablet_width_inherit=”default” animation_type=”default” enable_animation=”true” animation=”grow-in” animation_easing=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][divider line_type=”No Line” custom_height=”50px” custom_height_tablet=”0px” custom_height_phone=”0px”][image_with_animation image_url=”8742″ image_size=”full” animation_type=”entrance” animation=”None” animation_movement_type=”transform_y” hover_animation=”none” alignment=”” border_radius=”none” box_shadow=”none” image_loading=”default” max_width=”125%” max_width_mobile=”110%” el_class=”pdf-book1″][\/vc_column][\/vc_row]\r\n","protected":false},"excerpt":{"rendered":"

[vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none”…<\/p>\n","protected":false},"author":11,"featured_media":9388,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[13],"tags":[],"class_list":{"0":"post-9385","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-tax"},"acf":[],"_links":{"self":[{"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/posts\/9385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/comments?post=9385"}],"version-history":[{"count":6,"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/posts\/9385\/revisions"}],"predecessor-version":[{"id":9506,"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/posts\/9385\/revisions\/9506"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/media\/9388"}],"wp:attachment":[{"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/media?parent=9385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/categories?post=9385"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/tags?post=9385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}