Asset Finance Calculators

A chattel mortgage is a business loan where you own the asset from day one, can claim GST credits upfront, and claim depreciation. A finance lease means the lender owns the asset during the term, you make lease payments (which are tax deductible), and you can purchase or return the asset at the end. Chattel mortgage is better if you want to own the asset; finance lease offers more flexibility at end of term.

A balloon payment (or residual value) is a lump sum due at the end of your loan term. It reduces your monthly repayments during the loan but means you owe a larger amount at the end. For example, a $50,000 car loan with a 30% balloon would have a $15,000 payment due at the end. You can pay it, refinance it, trade in the car, or (with some products) return the vehicle.

Yes, if you're GST registered and use the vehicle for business purposes, you can claim the GST component. With a chattel mortgage, you can claim the full GST credit upfront (up to $5,885 for cars under the luxury car limit). The vehicle must be used primarily (more than 50%) for business to claim the full credit.

Novated leasing is a salary packaging arrangement where your employer deducts car payments and running costs from your pre-tax salary. It's best for PAYG employees in higher tax brackets (32.5%+) who want to reduce taxable income while driving a new car. It combines financing and running costs into one convenient payment and can include fuel, insurance, servicing, and registration.

For the 2024-25 financial year, small businesses with aggregated turnover under $10 million can instantly deduct the full cost of eligible assets costing less than $20,000 each. For vehicles, the depreciation limit applies (currently $68,108 for the 2024-25 year), meaning you can only claim depreciation up to this amount regardless of the purchase price.