Novated Car Lease - Part of Income?

[Cupcake]

Does anyone have any idea whether or not a novated car lease through an owned company is considered:

a) income
b) expense


Thank you

 

[Rod]

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).

 

[Sarah J]

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".

 

[Rod]

The 'income' part is in the employment remuneration package and should be shown as income.