Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128ac:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128AC (pt 1/3)
Character Range: 1220592–1223404

128AC  Deemed interest in respect of hire‑purchase and certain other agreements
 (1) In this section:
agreement means any agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings.
attributable agreement payment, in relation to a relevant agreement, means so much of any payment made or liable to be made under the agreement as represents consideration for the use, sale or disposal of the relevant agreement property.
carry forward interest, in relation to an attributable agreement payment in relation to a relevant agreement, means so much (if any) of the notional interest in relation to the payment as exceeds the amount of the payment.
eligible value, in relation to the relevant agreement property in relation to a relevant agreement, means the market value of the property at the time at which the agreement commences or commenced to apply in relation to the property.
formula interest, in relation to an attributable agreement payment in relation to a relevant agreement, means the amount ascertained in accordance with the formula , where:
A is the total interest in relation to the relevant agreements.
B is the total number of attributable agreement payments liable to be made under the relevant agreements; and
C is the number that is B, reduced by the number of attributable agreement payments made under the relevant agreement before the attributable agreement payment concerned.
notional interest, in relation to an attributable agreement payment in relation to a relevant agreement, means the sum of the formula interest (if any) in relation to the payment and the carry forward interest (if any) in relation to the immediately preceding attributable agreement payment in relation to the relevant agreement.
relevant agreement means an agreement entered into after 16 December 1984, being:
 (a) a hire‑purchase agreement; or
 (b) a lease or any other agreement relating to the use by a person of property owned by another person, being a lease or agreement under which:
 (i) the lessee or person using the property is entitled to purchase or require the transfer of the lease property or property subject to the agreement on the termination or expiration of the lease or agreement; or
 (ii) the lease term or term of the agreement is for all, or substantially all, of the effective life of the lease property or property subject to the agreement.
relevant agreement property, in relation to a relevant agreement, means:
 (a) in the case of a hire‑purchase agreement—the property that is the subject of the agreement; and
 (b) in any other case—the property in relation to which subparagraph (b)(i) or (ii) of the definition of relevant agreement applies.
total interest, in