Instant write-offs:

As part of the Federal Government’s Coronavirus Stimulus Package, the Instant Asset Write-Off threshold increased is $150,000 (net of GST) per asset acquired. This change applies to businesses with an aggregated annual turnover of less than $500 million, where those assets are first used or installed ready for use before 30 June 2023.

Car Limits:

From 1 July 2022 the following car threshold amounts apply for the 2022–23 financial year.

Income tax:

• The car limit for 2022–23 is $64,741.
• This is the maximum value that can be used for calculating depreciation on the business use of a car first used, or leased, in the 2022–23 income year.

Goods and services tax (GST):

• If you purchase 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, which is $5,885 in 2022–23.
• You can’t claim a GST credit for any luxury car tax you pay when you purchase a luxury car, regardless of how much you use the car in carrying on your business.

Luxury car tax (LCT):

• $84,916 for fuel-efficient vehicles in line with an increase to the motor-vehicle purchase sub-group of the Consumer Price Index (CPI).
• $71,849 for all other luxury vehicles, in line with an increase in the “All Groups” CPI.
• Remember, the LCT value of a car generally includes the value of any parts, accessories or attachments supplied or imported at the same time as the car.