The ATO on Wed 16.7.2014, released Product Ruling PR 2014/16 (Tax consequences for employees and employers under a LeasePlan novated vehicle lease). It applies to entities that enter into the scheme from Wed 16.7.2014 until 30 June 2017. The Ruling states that subject to certain assumptions, payments of the monthly rental by the employer, under the novated lease, will be deductible under s 8-1 of the ITAA 1997, provided the rental is not in respect of a luxury car.
[LTN 135, 16/7/14]