Australia's #1 for Law

Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!

Novated Car Lease - Part of Income?

Discussion in 'Family Law Forum' started by Cupcake, 11 February 2015.

Tags:
  1. Cupcake

    Cupcake Well-Known Member

    Joined:
    11 December 2014
    Messages:
    48
    Likes Received:
    3
    Does anyone have any idea whether or not a novated car lease through an owned company is considered:

    a) income
    b) expense


    Thank you
     
  2. Rod

    Rod Well-Known Member

    Joined:
    27 May 2014
    Messages:
    3,557
    Likes Received:
    495
    Not an expert on tax matters, but think it appears on both sides of the profit and loss sheet (so there is income and this income is used to pay the lease expense).
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
  3. Sarah J

    Sarah J Well-Known Member

    Joined:
    16 July 2014
    Messages:
    1,314
    Likes Received:
    248
    Hi Cupcake,

    I would put the lease in the "expenses" column. Since you don't "own" the car, it is not an asset. You don't get any financial inflow from the car lease, so it is not an income. The company would pay for you from your pre-taxed income. The remaining amount of your wages being "income" and the car rental amount being "expenses".
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
  4. Rod

    Rod Well-Known Member

    Joined:
    27 May 2014
    Messages:
    3,557
    Likes Received:
    495
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
Loading...

Share This Page

Loading...
gt;