Chattel mortgage gives you immediate ownership with potential GST and depreciation benefits. Australia's most popular business asset finance structure.
For GST-registered businesses
*Tax benefits subject to individual circumstances. Consult your accountant.
A chattel mortgage is a business loan where you purchase and own the asset (the "chattel") from day one, while the lender takes a mortgage over it as security until the loan is repaid.
Unlike a lease where the finance company owns the asset, with a chattel mortgage you're the legal owner from settlement. This means you can claim GST credits immediately and depreciate the asset on your books.
In legal terms, a chattel is any moveable personal property—as opposed to real property (land and buildings). So a chattel mortgage is simply a mortgage over moveable goods like vehicles, equipment and machinery.
You own the asset from settlement day
Chattel mortgages offer several potential tax advantages for GST-registered businesses. Always consult your accountant for advice specific to your situation.
If you're GST-registered, you can claim the full GST credit on the purchase price in your next BAS—potentially thousands of dollars back in your pocket immediately.
As the owner, you can depreciate the asset over its effective life, reducing your taxable income each year. Instant asset write-off may apply for eligible assets.
The interest component of your repayments may be tax deductible as a business expense, further reducing your taxable income.
Chattel mortgage is ideal for businesses that want ownership and tax benefits.
Claim the GST on the purchase price immediately in your next BAS. This is the biggest advantage over lease structures for GST-registered businesses.
If you want to own the asset from day one and have it on your balance sheet, chattel mortgage delivers immediate ownership with clear title.
Businesses wanting to claim depreciation deductions benefit from chattel mortgage's ownership structure. Instant asset write-off may also apply.
Chattel mortgages can include balloon/residual payments to lower monthly repayments, giving you cash flow flexibility.
See how chattel mortgage compares to other common finance options.
| Feature | Chattel Mortgage | Finance Lease | Hire Purchase |
|---|---|---|---|
| Ownership | ✓ Immediate | ✗ Lender owns | ✓ Progressive |
| GST Credit Timing | ✓ Upfront (full) | Progressive (on payments) | Progressive (on payments) |
| Depreciation | ✓ Yes (you own it) | ✗ No (lender owns) | ✓ Yes (as ownership builds) |
| Interest Deductible | ✓ Yes | N/A (rent deductible) | ✓ Yes |
| Balloon/Residual | ✓ Optional | ✓ Required | ✓ Optional |
| On Balance Sheet | ✓ Yes | May be off-balance sheet | ✓ Yes |
| Best For | GST-registered businesses | Off-balance sheet needs | Non-GST businesses |
From enquiry to ownership—here's how it works.
Share what asset you need and your budget.
We confirm chattel mortgage suits your situation.
We compare 60+ lenders for the best rate.
Fast approvals—often same day pre-approval.
You own the asset and claim your GST credit.
Quick answers to common questions.
No, but the biggest advantage of chattel mortgage—claiming GST upfront—only applies if you're GST-registered. Non-GST businesses may prefer hire purchase.
Yes. A balloon (residual) reduces your monthly payments. At the end, you pay it out, refinance, or trade in. Many businesses use balloons to manage cash flow.
Vehicles, equipment, machinery, technology—most business assets can be financed via chattel mortgage. Both new and used assets are eligible.
You claim the full GST on the purchase price in your next BAS after settlement. For a $55,000 vehicle, that's $5,000 back. Speak to your accountant about timing.
The interest component of your repayments is generally tax deductible as a business expense. Your accountant can confirm based on your circumstances.
Eligible businesses may be able to immediately deduct the full cost of qualifying assets. Check current thresholds and eligibility with your accountant.
Let's find the right chattel mortgage for your business—fast approvals, competitive rates, and tax-smart structuring.
Or email hello@mortgagefinanceadvisory.com.au
