Tax Laws Amendment (Transfer of Provisions) Act 2010 (79 of 2010)

Schedule 3   Leases of luxury cars

Part 3   Application and transitional provisions

Income Tax (Transitional Provisions) Act 1997

60   Before Division 247

Insert:

Division 242 - Leases of luxury cars

Table of sections

242-10 Application

242-20 Balancing adjustments

242-10 Application

(1) Division 242 of theIncome Tax Assessment Act 1997 (the new Division ) applies to assessments for the 2010-11 income year and later years.

(2) However, the new Division does not apply to a lease of a car if the lease was granted on or before 7.30 pm, by legal time in the Australian Capital Territory, on 20 August 1996 unless the lease was extended after that time (whether the extension took effect before or after that time).

(3) The definition of luxury car in subsection 995-1(1) of theIncome Tax Assessment Act 1997 applies to a reduction under former section 57AF of theIncome Tax Assessment Act 1936 or former section 42-80 of theIncome Tax Assessment Act 1997 in the same way as it applies to a reduction under section 40-230 of theIncome Tax Assessment Act 1997.

242-20 Balancing adjustments

Sections 242-20 and 242-90 of theIncome Tax Assessment Act 1997 apply to an amount included in assessable income under former Subdivision 42-F or 42-G of theIncome Tax Assessment Act 1997 and former subsection 59(2) of theIncome Tax Assessment Act 1936 in the same way as they apply to an amount included in assessable income under section 40-285 of theIncome Tax Assessment Act 1997.