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AustraliaBAS & TaxUpdated: Sep 13, 2026
Validation Pending: The capabilities described for Australia are currently under review. Prefiler does not yet offer production-validated automated pre-filing intelligence for this jurisdiction.
Direct Answer
The ATO imposes a "car limit" on luxury passenger vehicles. You can only claim a maximum GST credit equal to 1/11th of the car limit (approx $6,500), regardless of how much the car actually cost. The remainder cannot be depreciated.
Commercial vs Luxury Vehicles
This limit applies to passenger vehicles designed to carry loads under 1 tonne and fewer than 9 passengers. It does not apply to commercial utility vehicles (utes) or delivery vans used 100% for business.
Accounting Entry
If a business buys a luxury car for $110,000:
- The maximum GST credit claimed on the BAS is capped (e.g., $6,521).
- The remaining GST is added to the cost of the car.
- Depreciation is strictly capped at the ATO limit (e.g., $71,849). The remaining $38,000+ is permanently lost for tax purposes.