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BDR Business Accountants Mandurah | Depreciation Cost Limit

The Depreciation Cost Limit (DCL) is a value set every year to cap the depreciable cost of a ‘car’. For the 2023-2024 year this cap is $68,108. The DCL also acts to limit the maximum GST that an be claimed on a car, being $6,191 for the 2023-2024 year (that is, 1/11 x $68,108). Simply put, if your car costs $90,000 you will only be able to claim an input tax credit of $6,191 and you will only be able to depreciate $68,108. Not all motor vehicles are ‘cars’. A car is a motor vehicle (excluding motorcycles and similar vehicles) designed to carry a load of less than one tonne and fewer than nine passengers. The cost limit applies to all cars that are designed mainly to carry passengers, which means if more than 50% of the vehicle payload is designed to carry passengers then the DCL applies. There are other considerations and implications to be aware of, so it is best to discuss how the DCL will apply to your circumstances with your tax agent. You can make an appointment to have a chat with one of our business accountants. Call us on 08 9535 1566 or visit https://bdrbusiness.com.au BDR Business Accountants 4 Sutton St, Mandurah WA 6210 (08) 9535 1566 Google Maps: https://maps.app.goo.gl/QiYXQGVsXc3ZowWz7 Google Reviews: https://maps.app.goo.gl/D84HgTXVkE32iz5LA https://maps.app.goo.gl/EGQr4NadtF3939d79 https://maps.app.goo.gl/VEWL8hqkNTgHDazG8 https://maps.app.goo.gl/Tv4wWWUwN4ah7RKi7 https://maps.app.goo.gl/4phpjXpAb5G6wukt9 More videos from BDR Business Accountants in Mandurah: