You can only claim depreciation for the vehicle up to a certain limit. The excess is non-depreciated. 

For example, if a car was purchased for $60,000 in 2020 financial year, then 

  • depreciation can be claimed up to the 2020 threshold of $57,581 (see below) for the duration of ownership.
  • gst credit claimed on this car purchase will be $57,581 ÷ 11 = $5,234.64
  • On the balance sheet, it will appear as

Motor vehicle non-depr cost       $2,419

Motor vehicle depr cost             $57,581

TOTAL MV cost                           $60,000


  • As a journal entry, it will be


DR      Motor vehicle non-depr cost       $2,419

DR      Motor vehicle depr cost             $57,581

     CR      Bank/loan                                        $60,000     






Last modified: 19 Jun 2019 QC 21100