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adam_851(Newbie)Newbie
28 June 2024

Hi,


I currently have a novated lease on a vehicle that I did not have to pay luxury car tax on that is exempt from the LCT however through my lease provider I am advise that I have to pay the luxury lease impact charge for any value over $68,108 where the limit was in 2021.


Even though the vehicle is exempt from LCT by the ATO, am I obliged to pay the luxury lease impact charge and is my employer unable to claim the full depreciation on the vehicle ?


Is the limit of $68,108 still the limit for depreciation on a vehicle that is exempt from the LCT?


thank you

Adam

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1 replies
681 views
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Most helpful reply

AriATO(Community Support)Community Support
2 July 2024

Hi @adam_851


Yes there's a limit.


The car limit for 2024-2025 is $69,764. If a business buys a car for more than the car limit their depreciation amount is reduced to this amount.


The amount you pay for a novated lease is between you, your employer and provider. It's up to you to accept or not. You may want to get financial advice to see if it's right for you.

All replies

Most helpful reply

AriATO(Community Support)Community Support
2 July 2024

Hi @adam_851


Yes there's a limit.


The car limit for 2024-2025 is $69,764. If a business buys a car for more than the car limit their depreciation amount is reduced to this amount.


The amount you pay for a novated lease is between you, your employer and provider. It's up to you to accept or not. You may want to get financial advice to see if it's right for you.

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Am I required to pay Luxury Lease Impact Charge on a vehicle exempt from Luxury Car Tax ? | ATO Community