Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The * luxury car lease payments under the lease are not assessable income and are not * exempt income of the lessor.
Note: Those lease payments are instead taken into account in calculating accrual amounts that are included in the lessor's assessable income under section 242 - 35.
(2) In working out the amounts the lessor can deduct for any income year, ignore the fact that subsection (1) makes the * luxury car lease payments * non - assessable non - exempt income.
Note: This allows the lessor to continue to deduct amounts related to earning the lease payments (such as interest on an amount the lessor borrowed to acquire the car), just as if the amounts related to earning interest on the notional loan to the lessee.