Enter your details below
| Tax Benefit | Amount | Notes |
|---|---|---|
| Interest Deductions (p.a.) | $1,600 | Year 1 interest portion |
| Depreciation (Diminishing Value) | $12,000 | 15% DV rate |
| GST Input Credit | $7,273 | If registered |
| Year | Opening Value | Depreciation (15%) | Closing Value |
|---|
A chattel mortgage is a business finance product where you take ownership of the asset from day one while the lender holds a mortgage over it as security. It's popular for business vehicles and equipment because you can claim GST on the purchase price upfront and depreciate the asset.
With a chattel mortgage, you can claim GST on the purchase price upfront, deduct interest repayments, claim depreciation on the asset, and potentially use the instant asset write-off. The asset appears on your balance sheet from day one, which can benefit your business financials.
Chattel mortgages are best for GST-registered businesses that want to own the asset outright, claim GST credits upfront, and maximise depreciation deductions. They're particularly beneficial for businesses with higher taxable incomes that benefit from depreciation write-offs.
Important Disclaimer & Assumptions
Assumptions: GST input credits are only available to GST-registered businesses. Depreciation rates shown are indicative (diminishing value method). Balloon payments affect total interest paid. Tax benefits depend on business structure.
General Disclaimer: This calculator is provided by Mortgage & Finance Advisory (Credit Representative 575841 of Connective Credit Services Pty Ltd, Australian Credit Licence 389328) for illustrative and educational purposes only. Results are estimates based on the information you provide and the assumptions listed above. They do not constitute financial advice, a loan offer, or a guarantee of any outcome.
Actual loan terms, interest rates, fees, government charges, and eligibility criteria will vary between lenders and depend on your individual circumstances. Interest rates used are for comparison purposes only and may not reflect current market rates.
We recommend seeking independent financial, legal, and tax advice before making any financial decisions. For personalised advice tailored to your situation, please book a free strategy call with our team.
© 2026 Mortgage & Finance Advisory. All rights reserved. ABN: 90 732 203 952 | Credit Representative 575841 of Connective Credit Services Pty Ltd, Australian Credit Licence 389328
