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Did you know that the ATO reviews the Luxury Car Tax and Car Cost Depreciation Limit each year? In the 2025 financial year, these thresholds are increasing.

Here are the limits for FY2025 and the comparison to FY2024, which apply to the Equipment Finance Lease (Finance and Novated) product.

Category FY24 FY25
Luxury Car Tax (Fuel efficient vehicles) $89,332 $91,387
Luxury Car Tax (Other vehicles)  $76,950 $80,567
Car Cost Depreciation Limit $68,108 $69,674
GST Input Tax Credit Limit $6,191 $6,334

Ensuring compliance with these limits will help you optimise your tax benefits and maintain accurate financial records. As always, we’re here to help, so reach out to us to help you with your financial planning and lease agreements.

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AAG AustAsia

AAG is a family-owned group providing Tax planning, management accounting, wealth management, and more. Established in 1979, AAG acts entirely in their clients' best interest by providing financial expertise and upholds a reputation of nurturing long-lasting relationships with clients to assist them with all their personal and business financial issues.