Every year a maximum claimable GST amount is set by the ATO on motor vehicles.
Car Limits 2011/12
- The luxury car tax threshold for the 2011-12 financial year is $57,466 which is equal to the car limit and is used to determine if luxury car tax is payable.
- The fuel-efficient car limit for the 2011-12 financial year is $75,375. For LCT purposes, fuel-efficient cars are cars that have a fuel consumption of seven litres per 100 kilometres or less.
Source: http://law.ato.gov.au/atolaw/view.htm?docid=%22LCD%2FLCTD20111%2FNAT%2FATO%2F00001%22
Car Limits 2010/11
- The car limit for the 2010-11 financial year was $57,466
- The fuel-efficient car limit for the 2010-11 year was $75,375
What is a Luxury Car?
Under LCT law, a car is a motor-powered road vehicle that is designed to carry both of the following:
- a load of less than two tonnes, and
- less than nine passengers.
It includes:
- passenger cars
- station wagons
- four-wheel drive vehicles.
Limousines, regardless of the number of passengers they are designed to carry, are also cars under LCT law.
The term 'car' doesn't include:
- trucks and vans designed to carry a load of more than two tonnes
- vehicles, such as buses, designed to carry nine or more passengers
- motorcycles or similar vehicles
- racing and rally cars that are not road vehicles and cannot be registered for use on public roads in any country in the world. These racing or rally cars are designed for use only on rally or racing circuits.
Source: http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/00205487.htm&page=3&H3
Fuel Efficient Cars
A fuel-efficient car has a fuel consumption that does not exceed seven litres per 100km as a combined rating under the vehicle standards in force under section 7 of the Motor Vehicle Standards Act 1989.
Source http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/13288.htm&page=11#P667_49284