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

53   Subsection 995-1(1) (definition ofluxury car)

Repeal the definition, substitute:

luxury car : a*car is a luxury car at a time if section 40-230 would reduce its*cost as a*depreciating asset if an entity acquired it at that time for its*market value.

Note 1: Division 242 treats a lease of a luxury car as a notional sale of the car by the lessor to the lessee financed by a notional loan by the lessor to the lessee.

Note 2: Section 242-10 of theIncome Tax (Transitional Provisions) Act 1997 extends this definition to cover reductions of cost under former provisions corresponding to section 40-230.