Estimate your car lease payments with ATO minimum residual values. Compare operating lease, finance lease, and chattel mortgage structures side by side to see which works best for your business.
Same vehicle, same inputs. Different structures change the tax treatment, ownership outcome, and total cost.
| Operating Lease | Finance Lease | Chattel Mortgage | |
|---|---|---|---|
| Monthly payment | $1,185.67 | $1,185.67 | $1,185.67 |
| Total cost | $72,218 | $72,218 | $72,218 |
| Total interest | $9,218 | $9,218 | $9,218 |
| Residual / balloon due | None (vehicle returned) | $29,534 | $29,534 |
| GST credit | On each payment | On each payment | $5,727 |
| Est. annual tax benefit | $3,557 | $3,557 | $2,558 |
| Est. total tax benefit | $10,671 | $10,671 | $13,401 |
| Est. net cost after tax | $61,547 | $61,547 | $58,817 |
| Ownership outcome | Return vehicle to lessor | Pay residual to own, or return vehicle | Own from day one, pay out balloon at end |
Tax benefit estimates are indicative only and based on simplified assumptions. Actual tax outcomes depend on your individual circumstances, business structure, and other factors. The car limit for depreciation deductions may apply. Consult your accountant or tax adviser for advice specific to your situation.
| Lease term | Minimum residual | Residual on your vehicle |
|---|---|---|
| 1 year | 65.63% | $41,347 |
| 2 years | 56.25% | $35,438 |
| 3 years(selected) | 46.88% | $29,534 |
| 4 years | 37.5% | $23,625 |
| 5 years | 28.13% | $17,722 |
The structure comparison table shows how operating lease, finance lease, and chattel mortgage differ for the same vehicle. The tax treatment and ownership outcome change significantly between structures.
A higher residual reduces your regular lease payments but means a larger amount due at the end (for finance lease and chattel mortgage). The ATO minimum residuals set the floor for tax-deductible leases.
Lease terms from 1 to 5 years each have different ATO minimum residuals. A shorter term means higher payments but lower residual exposure. The residual auto-adjusts when you change the term.
Base rate entities (turnover under $50M) pay 25% company tax. Non-base rate entities pay 30%. A higher tax rate means deductions are worth more, which favours lease structures where payments are fully deductible.
Most lessors want to see at least 12-24 months of trading history. Start-ups may need to provide additional financials or a guarantee.
A valid ABN is required for all business vehicle leases. GST registration is not mandatory but affects the tax treatment and which structures are most beneficial.
The type, age, and value of the vehicle affect the lease rate and residual options. New vehicles attract better rates and more flexible terms. Some lessors have restrictions on vehicle age for leases.
Your personal and business credit history influences the lease rate. A clean credit file opens access to the most competitive rates from major lessors.
Compare car lease and finance options from 50+ lenders. Find a structure and rate that works for your business.
Subject to lender approval, terms and conditions apply.
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Results are estimates only and should not be relied upon for financial decisions. Actual car lease repayments will depend on the lender, your credit profile, and the specific terms offered. Interest rates used are for illustration purposes only and may not reflect current market rates.
Subject to lender approval, terms and conditions apply.
This calculator is general information only and is not financial advice.