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

Schedule 3   Leases of luxury cars

Part 2   Consequential amendments

Income Tax Assessment Act 1997

51   Subsection 995-1(1)

Insert:

luxury car lease payment , in relation to a*car to which Division 242 (about luxury car leases) applies, means an amount that the lessee under the lease is required to pay for the rental or hire of the car, but does not include:

(a) an amount in the nature of a penalty payable for failure to make a payment for rental or hire on time; or

(b) a*termination amount.