Document ID: chunk:federal_register_of_legislation:C2024C00267:section:5:p2
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 5 (pt 2/3)
Character Range: 66825–69309

Subdivision 20‑B—Disposal of a car for which lease payments have been deducted

Table of sections
20‑100 Application of Subdivision 20‑B of the Income Tax Assessment Act 1997
20‑105 The cost of a car acquired in the 1996‑97 income year or an earlier income year
20‑110 The termination value of a car disposed of in the 1996‑97 income year or an earlier income year
20‑115 Reducing the assessable amount for the disposal of a car in the 1997‑98 income year or later if there has been an earlier disposal of it

20‑100  Application of Subdivision 20‑B of the Income Tax Assessment Act 1997
  Subdivision 20‑B of the Income Tax Assessment Act 1997 applies to assessments for the 1997‑98 income year and later income years.

20‑105  The cost of a car acquired in the 1996‑97 income year or an earlier income year
 (1) If:
 (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.
Note 1: 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.
Note 2: The depreciation provisions were in Subdivision A of Division 3 of Part III of the Income Tax Assessment Act 1936.
 (2) 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.

20‑110  The termination value of a car disposed of in the 1996‑97 income year or an earlier income year
  If:
 (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 disposed of the car in the 1996‑97 income year or an earlier income year;
the car's termination value (in respect of the disposal by the lessor) for the purposes of section 20‑120 of the Income Tax Assessment Act 1997 is the consideration receivable by the lessor for the disposal (worked out under former section 59 of the Income Tax Assessment Act 1936).
Note: 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