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Car Lease

Car Lease. When leasing cars the financier purchases the motor vehicle and provides a vehicle lease arrangement back to you. There can be an arrangement to have the opportunity to own the vehicle at the end of the term of the loan.

The financier being the purchaser will claim the GST component in the sale of the motor vehicle. The balance is then leased of which the payments are subject to GST (unless there is GST exemption).

Car Lease terms and residuals can be set by the Australian Taxation Office and these details can normally be provided by your car finance company, accountant of the Australian Taxation Department.

The interest rates are fixed with no option for a variable interest rate.

Repayments could be claimed as a deduction against taxation of the leaser. There could a limit to how many payments claimed in one financial year.

 

 

 

 

 

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