• Leased luxury cars

    Attention

    Warning:

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

    End of attention

    If you leased a luxury car and wish to claim a deduction at item D1 or D2, the following information about luxury cars will help you.

    A leased luxury car is a leased car that at the time the lease began cost more than the 'luxury car limit' that applied in the relevant income year.

    You can claim a deduction for the decline in value of a leased luxury car (but not for other leased cars). The car can be new or second-hand. You must use either the:

    • 'one-third of actual expenses' method, or
    • 'logbook' method.

    When claiming a deduction for decline in value, the initial value that you use for the car is the limit that applied in the income year in which the lease began.

    Table 2

     

    Luxury car limits for the past 10 years

    2011-12

    $57,466

    2006-07

    $57,009

    2010-11

    $57,466

    2005-06

    $57,009

    2009-10

    $57,180

    2004-05

    $57,009

    2008-09

    $57,180

    2003-04

    $57,009

    2007-08

    $57,123

    2002-03

    $57,009

      Last modified: 01 Jun 2012QC 25766