The finance company acquires the vehicle and rents it to you. At the end of the lease the finance company can agree to sell the vehicle to you for what is usually called the residual. The finance company is the legal owner during the rental period.
A lease must have a residual at the end of the term. There are maximum and minimum residual values depending on the term. Generally, the maximum values are set by the finance company and the minimum are set by the taxation office.
From a taxation point of view the lessee will claim the monthly payments as a tax deduction in line with the % claimed for business use for individuals and fully deductible for companies (Fringe Benefits Tax payable on private use).
As a Lease is a rental agreement and therefore considered a service the payments attract GST. The GST can be claimed as an input tax credit in line with the % claimed for business use for individuals and fully deductible for companies (Fringe Benefits Tax payable on private use).