Model your farm 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 for your agricultural machinery.
| Frequency | Repayment | Total interest | Total cost |
|---|---|---|---|
| Weekly | $540.88 | $20,629 | $140,629 |
| Fortnightly | $1,082.33 | $20,703 | $140,703 |
| Monthly(selected) | $2,347.94 | $20,876 | $140,876 |
Same asset, same inputs. Different structures change the tax treatment and total cost.
| Chattel Mortgage | Hire Purchase | Finance Lease | |
|---|---|---|---|
| Monthly repayment | $2,347.94 | $2,347.94 | $2,347.94 |
| Total cost | $140,876 | $140,876 | $140,876 |
| Total interest | $20,876 | $20,876 | $20,876 |
| GST credit | $10,909 | On each payment | On each payment |
| Annual depreciation benefit | $2,727 | $2,727 | N/A (payments deductible) |
| Annual interest deduction | $1,044 | Not until ownership | Included in payments |
| Est. total tax benefit | $29,765 | $13,636 | $35,219 |
| Est. net cost after tax | $111,112 | $127,240 | $105,657 |
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 $248 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 your farm machinery.
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, which can help manage cash flow between harvests. Use the slider to see how different balloon levels affect your repayments and total cost.
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. Established farming operations with consistent production records are viewed favourably. Newer operations may need to provide a business plan or larger deposit.
Lenders review your farm financials including profit and loss, balance sheet, and recent tax returns. Seasonal income variation is understood by agricultural lenders — they focus on your average annual cash flow and overall position.
The type, age, brand, and condition of the farm equipment affect the rate and terms. New equipment from major manufacturers (John Deere, Case IH, New Holland) attracts better rates. Used equipment is assessed on age, hours, and maintenance history.
Your personal and business credit history influences the rate. A clean credit file opens access to the most competitive rates. Some specialist agricultural lenders can work with less-than-perfect credit if the farming operation is strong.
Compare farm equipment finance from 50+ lenders. Find a structure and rate that works for your operation.
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.
Results are estimates only and should not be relied upon for financial decisions. Actual farm 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.