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Samjhana(Newbie)Newbie
24 Sept 2025

Hi,

We have a vehicle purchased in October 2024 for $80,000 (net of GST), with an additional $4,000 incurred for stamp duty and registration, bringing the total acquisition cost to $92,000 (including GST). Subsequently, a further $5,000 was spent on improvements.


As per the ATO guidance, the car cost limit for depreciation purposes in the 2024–25 income year is $69,647which applies to the first element of cost.


Could you please confirm whether the stamp duty, registration, and later improvements can be treated as second elements of cost and depreciated separately, or if they are also subject to the cost limit cap?


Thanks

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YellowPotato(Taxicorn)Taxicorn
25 Sept 2025

Registration you might be able to separate, that might be more of a running cost rather than capital. Everything else I think would be part of the car's cost base. So most likely claim $6331 of gst and $69647 lifetime depreciation.



You may want to see a tax agent to make sure it's correct now so you don't need to worry as much when you sell the vehicle.

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