Car limit for certain motor vehicles
This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
End of attention
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