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What is the Luxury Tax Limit and how would it affect my Novated Lease?

April 26, 2017affect lease limit luxury novated tax

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What is the Luxury Tax Limit and how would it affect my Novated Lease?

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Vehicles with a purchase price over $57,123 are subject to a Luxury Tax in addition to the GST. This tax is included in the monthly Novated Lease Rental. Depreciation is only claimable up to the Luxury Tax Limit, therefore a luxury lease is proportionately more expensive, with the additional cost added to your package.