The limit, by income year
| Income year | Car limit | Read from |
|---|---|---|
| 2026-27 | $69,883 | ATO car thresholds notice, 9 June 2026 |
| 2025-26 | $69,674 | ATO car limit list, 27 May 2026 |
| 2024-25 | $69,674 | ATO car limit list, 27 May 2026 |
| 2023-24 | $68,108 | ATO car limit list, 27 May 2026 |
| 2022-23 | $64,741 | ATO car limit list, 27 May 2026 |
| 2021-22 | $60,733 | ATO car limit list, 27 May 2026 |
| 2020-21 | $59,136 | ATO accelerated depreciation page |
| 2019-20 | $57,581 | ATO accelerated depreciation page |
The limit applies in the income year the car is first used or leased. Before applying it, reduce the car’s cost by any GST credit you are entitled to claim. GST you cannot claim stays in the cost, including all GST if you are not registered. The ATO no longer publishes an annual determination for the limit; the figure is indexed and announced on its website each June.
Download the table as CSV. Cite as Duguid, R. (2026). Car limit for depreciation by income year [Data set]. https://duguid.com.au/rates/car-limit/. Verify against current ATO guidance before relying on a figure.
GST credit and luxury car tax
When a car costs more than the limit, the GST credit is generally capped at one-eleventh of the limit: $6,353 for 2026-27, per the ATO’s motor vehicle purchase guidance. Luxury car tax paid on the purchase is never creditable. The luxury car tax thresholds are separate figures, $91,661 for fuel-efficient vehicles and $80,809 for other vehicles in 2026-27, and are not maintained here.
Common questions
What is the car limit for 2026-27?
$69,883 for a car first used or leased in the 2026-27 income year, per the ATO’s car thresholds notice of 9 June 2026.
Did the car limit change for 2025-26?
No. It stayed at $69,674, the same figure as 2024-25, because the indexation factor for that year did not lift it.
Which vehicles does the car limit apply to?
Passenger vehicles designed to carry a load of less than one tonne and fewer than nine passengers. A motorcycle or similar vehicle is excluded, as are utes and vans over the one-tonne load rating.
What is the most GST credit for a car over the limit?
Generally one-eleventh of the car limit: $6,353 for 2026-27. Luxury car tax paid on the car is not creditable.
General reference only, not tax, legal or financial advice. Figures here reflect the sources named above as at the verification date. Check current ATO guidance or the legislation before relying on a figure.
Maintained by Ryan Duguid as part of his open source Australian computational accounting tools. He is a Provisional CA ANZ Member. CA ANZ has not endorsed this site or its tools. Source and contact.