1. Income Tax:
   • The car limit for 2024–25 is $69,674. This value is used to calculate depreciation on a car if both of the following apply:
     • You use the car for business purposes.
     • You first use or lease the car in the 2024–25 income year.
2. Goods and Services Tax (GST):
   • If you buy a car and its price exceeds the car limit, the maximum GST credit you can claim (except in certain circumstances) is one-eleventh of the car limit.
   • For the 2024–25 income year, the maximum GST credit you can claim is $6,334 (1/11 × $69,674).
   • Note that you can’t claim a GST credit for luxury car tax paid when buying a luxury car, even if it’s used for business purposes.
3. Luxury Car Tax (LCT):
   • The LCT threshold for 2024–25 is:
     • $91,387 for fuel-efficient vehicles.
     • $80,567 for all other luxury vehicles.
   • Be cautious of schemes offering to buy luxury cars from dealers on your behalf at a discount, as they may be attempting to evade LCT¹.

For more details, you can visit the Australian Taxation Office’s Small Business Newsroom page.