Income Tax Assessment Act 1997
The lessor ' s assessable income includes the interest on the notional loan.
The lease payments to the lessor are non-assessable non-exempt income.
If the consideration for a notional sale of a car exceeds the adjustable value of the car to the lessor, the excess will be included in the lessor ' s assessable income under section 40-285 .
There would be a similar result if the lessor is treated as having reacquired the car and then sells the car for more than the cost of reacquisition.
|242-35||Amount to be included in lessor ' s assessable income|
|242-40||Treatment of lease payments|