Model your equipment finance repayments and compare chattel mortgage, hire purchase, and finance lease structures side by side. See GST credits, depreciation benefits, and instant asset write-off eligibility.
| Frequency | Repayment | Total interest | Total cost |
|---|---|---|---|
| Weekly | $225.37 | $8,595 | $58,595 |
| Fortnightly | $450.97 | $8,626 | $58,626 |
| Monthly(selected) | $978.31 | $8,698 | $58,698 |
Same asset, same inputs. Different structures change the tax treatment and total cost.
| Chattel Mortgage | Hire Purchase | Finance Lease | |
|---|---|---|---|
| Monthly repayment | $978.31 | $978.31 | $978.31 |
| Total cost | $58,698 | $58,698 | $58,698 |
| Total interest | $8,698 | $8,698 | $8,698 |
| GST credit | $4,545 | On each payment | On each payment |
| Annual depreciation benefit | $1,420 | $1,420 | N/A (payments deductible) |
| Annual interest deduction | $435 | Not until ownership | Included in payments |
| Est. total tax benefit | $13,822 | $7,102 | $14,675 |
| Est. net cost after tax | $44,876 | $51,596 | $44,024 |
Tax benefit estimates are indicative only and based on simplified assumptions. Actual tax outcomes depend on your individual circumstances, business structure, and other factors. Consult your accountant or tax adviser for advice specific to your situation.
Switching from monthly to weekly repayments could save you $103 in interest over the life of this finance.
The structure comparison table shows how chattel mortgage, hire purchase, and finance lease differ for the same inputs. The tax treatment can make a significant difference to the net cost of the asset.
Toggle the instant asset write-off on to see whether your asset qualifies. For eligible assets under $20,000, the year one tax benefit can substantially reduce the effective cost.
A higher balloon reduces your regular repayments but increases the total cost and creates a lump sum obligation at the end. Use the slider to see the trade-off.
Base rate entities (turnover under $50M) pay 25% company tax. Non-base rate entities pay 30%. The tax rate affects the value of every deduction, so switching between them shows a meaningful difference in net cost.
Most lenders want to see at least 12-24 months of trading history. Newer businesses may need to provide additional financials or a larger deposit.
Lenders review your business financials (profit and loss, balance sheet, or recent tax returns) to assess serviceability. Healthy cash flow is the key indicator.
The type, age, and condition of the equipment affect the rate and terms. New equipment and well-known brands attract better rates. Most lenders have maximum age limits for used equipment.
Your personal and business credit history influences the rate. A clean credit file opens access to the most competitive rates. Some non-bank lenders can work with less-than-perfect credit.
Compare equipment finance from 50+ lenders. Find a structure and rate that works for your business.
Subject to lender approval, terms and conditions apply.
Enter your email and we'll send you a link to this calculation so you can revisit it later or share it with your accountant.
There are three main structures. Chattel mortgage: you own the asset from day one and the lender has a charge over it as security. You can claim GST upfront and depreciate the asset. Hire purchase: the lender owns the asset until you make the final payment, then ownership transfers to you. You can claim depreciation but interest is not deductible until ownership transfers. Finance lease: the lender owns the asset throughout. Lease payments are fully tax deductible, and you pay a residual at the end to acquire the asset.
If your business has an aggregate annual turnover of less than $10 million, you can immediately deduct the full cost of eligible assets costing less than $20,000 each (2025-26 threshold). This replaces the standard depreciation schedule and gives you the full tax benefit in year one instead of spreading it over the asset's effective life.
Equipment finance rates in Australia typically range from 5.5% to 9% p.a. depending on the asset type, your business trading history, financial position, and the lender. New equipment generally attracts lower rates than used. The rate used in this calculator is for illustration only.
Yes. Most lenders finance used equipment up to 10-15 years old. Rates may be slightly higher than for new equipment, and the loan term may be shorter depending on the age and expected useful life of the asset.
A residual (or balloon) is a lump sum due at the end of your finance term. It reduces your regular repayments during the loan but means you owe a larger amount at the end. You can pay it out, refinance it, or in the case of a lease, return the asset.
If your business is GST registered, the treatment depends on your finance structure. Chattel mortgage: claim the full GST credit upfront on the purchase price (purchase price divided by 11). Hire purchase and finance lease: claim the GST component on each instalment payment throughout the term.
Typically you will need: a valid ABN, two years of business financial statements or tax returns, a quote or invoice for the equipment, and your driver's licence. Some lenders offer low-doc options for smaller amounts with a strong trading history.
Results are estimates only and should not be relied upon for financial decisions. Actual equipment finance 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.