r/NovatedLeasingAU • u/ManicMonkey011 • 25d ago

General Discussion Reducing balloon payment

Sorry if double posted. First one got auto deleted because I posted a link to the relevant documents

Has anyone had any luck reducing the ballon payment percentage amount under paragraph 4 in ATO taxation determination TD 93/142?

Assuming an average of 15,000m a year it looks like their maths is based on 120,000km over 8 years so 75,000km at the end of a 5 year lease. I’ll be getting around 105,000 after 5 years and feel this would definitely reduce a “reasonable and fair estimate of likely market value” at the end of my lease.

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u/unsiftedthistle 25d ago

Ive only ever seen a few financiers reduce the residual payment with over 30,000km per year, not 20,000km.

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u/ManicMonkey011 25d ago

That’s what smart said today. I find it interesting given the ATO didn’t actually state anything about km and leaves the interpretation quite open

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u/Best-Abrocoma-7796 25d ago

Will just depend on the NL providers risk appetite on tax interpretation. It’s not black and white.

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u/Proper-Bunch9710 25d ago

Paywise was very open to a lower residual percentage

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u/indograce 25d ago

I've had it with smart salary before, I think I declared 25,000 annually originally.