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Tom123456(I'm new)I'm new
7 Dec 2021

Hello, I am writing in regards to whether or not utes with a carrying capacity can still be exempt from the car cost limit and the associated GST claim if their payload is under one tonne. For instance, say a RAM ute has a carrying capacity of 800kg, is there any way this isn't treated as a "car" for tax purposes? I am aware that this may be exempt from FBT under the calculation of 5 passengers x 68kg = 340kg which does not equal 50% of the payload. The ATO definition of a "car" for cost limit & GST purposes seems quite narrow which exludes these work related vehicles. Some clarification on this would be appreciated. Thanks!

5,222 views
3 replies
5,222 views
3 replies

Most helpful response

Most helpful replyATO Certified Response

RenATO(Community Support)Community Support
ATO Certified Response8 Dec 2021

Hi @Tom123456


Utes with a carrying capacity of less than one tonne are classed as a car, and for the purposes of claiming a deduction for expenses, are limited to question D1 as confirmed under Definition car vs other vehicles.


The rules for claiming GST on a ute with a carrying capacity of less than one tonne are stated under Assets and exclusions - Car limit, Table 2 with no exceptions.

All replies

Most helpful replyATO Certified Response

RenATO(Community Support)Community Support
ATO Certified Response8 Dec 2021

Hi @Tom123456


Utes with a carrying capacity of less than one tonne are classed as a car, and for the purposes of claiming a deduction for expenses, are limited to question D1 as confirmed under Definition car vs other vehicles.


The rules for claiming GST on a ute with a carrying capacity of less than one tonne are stated under Assets and exclusions - Car limit, Table 2 with no exceptions.

earthworxcl(Newbie)Newbie
24 Oct 2022

Can I get further clarification on car limit. Does it have to be a ute or van?


I am purchasing a wagon with a payload over 1T. Would this be exempt of car limit?

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Can utes with a carrying capacity of less than one tonne not be treated as a "car" for tax purposes? | ATO Community