This definition applies to all payments.
The commercial lease value of an asset is the value that can reasonably be obtained by using the asset. Generally this is the asset's market RENTAL value.
If a person's asset does not have a commercial lease value THEN notional income CANNOT be assessed.
Explanation: The ZERO commercial lease value is taken to be a value of LESS than 2.5% of the asset's value.
Example: The following assets have no commercial lease value:
The commercial lease value for a person's farming property is ALWAYS assessed by the AVO. Delegates MUST tell the person how the valuation was calculated. A delegate MAY request a reassessment if the valuation does not SUFFICIENTLY take into account the:
Example 1: Soil conditions, erosion, salinity, and condition of fencing.
Example 2: An existing lease.
Example 3: Rates, insurance and interest.
Policy reference: SS Guide 220.127.116.11 Notional Ordinary Income - Overview, 18.104.22.168 Notional Ordinary Income - Person's Farm Used by a Family Member, 22.214.171.124 Notional Ordinary Income - Other Farming Situations
Last reviewed: 5 May 2008