• Car limit for certain motor vehicles

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Cars designed mainly for carrying passengers are subject to a car limit. If the first element of cost exceeds the car limit for the income year in which you start to hold it (after any adjustments required for acquisition discounts-see Car acquired at a discount-and for any input tax credit or adjustment-see GST input tax credits), that first element of cost is reduced to the car limit. The car limit also applies under the luxury car lease rules-see Leased luxury cars. It does not apply in certain circumstances to some cars fitted out for transporting disabled people.

    The car limit is $55 134 for this income year. When in time a balancing adjustment event occurs for the car, the termination value must be adjusted under a special formula-see Balancing adjustment rules for cars.

    Last modified: 01 Jun 2005QC 27399