Income Tax (Transitional Provisions) Act 1997
(a) in the 1997-98 income year or a later income year you dispose of a car that was leased to you or your associate; and
(b) the lessor acquired the car in the 1996-97 income year or an earlier income year;
the cost of the car to the lessor for the purposes of section 20-120 of the Income Tax Assessment Act 1997 is worked out under the depreciation provisions of the Income Tax Assessment Act 1936 .
Section 20-120 of the Income Tax Assessment Act 1997 is about a limit on the amount to be included in your assessable income because of your disposal of the car.
In working out the cost of the car to the lessor, disregard any election the lessor made under former subsection 59(2A) or (2D) of the Income Tax Assessment Act 1936 to reduce the cost of the car.