Model your machinery 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 | $360.59 | $13,752 | $93,752 |
| Fortnightly | $721.55 | $13,802 | $93,802 |
| Monthly(selected) | $1,565.29 | $13,918 | $93,918 |
Same machinery, same inputs. Different structures change the tax treatment and total cost.
| Chattel Mortgage | Hire Purchase | Finance Lease | |
|---|---|---|---|
| Monthly repayment | $1,565.29 | $1,565.29 | $1,565.29 |
| Total cost | $93,918 | $93,918 | $93,918 |
| Total interest | $13,918 | $13,918 | $13,918 |
| GST credit | $7,273 | On each payment | On each payment |
| Annual depreciation benefit | $1,818 | $1,818 | N/A (payments deductible) |
| Annual interest deduction | $696 | Not until ownership | Included in payments |
| Est. total tax benefit | $19,843 | $9,091 | $23,479 |
| Est. net cost after tax | $74,074 | $84,827 | $70,438 |
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 $165 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 machinery. The tax treatment can make a significant difference to the net cost of the equipment.
Toggle the instant asset write-off on to see whether your machinery 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, preserving working capital for operations. Use the slider to see the trade-off between lower repayments and higher 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. Manufacturing and industrial businesses with stable revenue attract the best terms.
Lenders review your business financials (profit and loss, balance sheet, or recent tax returns) to assess serviceability. Healthy cash flow and consistent revenue are the key indicators.
The type, age, condition, and brand of machinery affect the rate and terms. Well-known industrial brands with strong resale markets attract better rates. Lenders assess remaining useful life 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 machinery finance 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 machinery 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.