Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-1 - ASSESSABLE INCOME  

Division 20 - Amounts included to reverse the effect of past deductions  

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

The usual case

SECTION 20-115   Working out the profit on the disposal  

20-115(1)    
The profit on the disposal is the amount by which the ^* consideration receivable for the disposal exceeds:

• the amount it cost you to acquire the ^* car;

plus:

• any capital expenditure you incurred on the car after acquiring it.

20-115(2)    

The consideration receivable is worked out using this table:

Consideration receivable for the disposal of the car
Item	In this situation:	the consideration receivable is:
1	you sell the *car for an amount specific to it	the proceeds of the sale, less the expenses of the sale
.
2	you sell the *car with other property without a specific amount being allocated to it	the part of the total proceeds of the sale that is reasonably attributable to the car less the part of the reasonably attributable expenses of the sale
.
3	you trade the *car in and buy another car	the value of the trade-in, plus any other consideration you receive
.
4	you sell the *car and another entity buys another car	the amount by which the cost of the other car is reduced by the sale, plus any other consideration you receive
.
5	you dispose of the *car to an insurer because it is lost or destroyed	the amount or value received or receivable under the insurance policy

20-115(3)    

However, if the disposal of the ^* car is a ^* taxable supply, the consideration receivable does not include an amount equal to the ^* GST payable on the supply.