Novated Leasing & Salary Packaging

A Novated Lease can be both a cost and tax effective way of financing a vehicle. 

·          Lease payments are taken out of pre-tax salary, otherwise known as salary packaging
·          All expenses are covered in one payment, including insurance, registration, maintenance and fuel, as well as lease payments (or can be lease payments alone)
·          Employee is able to choose vehicle of their choice
·          If vehicle maintains good resale value, the employee will benefit from this in resale instead of employer as with employer as with company cars

Chattel Mortgage

Chattel mortgages allow sole traders, partnerships and companies using the 'cash' method of accounting to claim back the GST of the vehicle's purchase price in the first Business Activity Statement after purchase.

·          Loan term ranges from 36 to 60 months
·          Parallel to CHP with regards to treatment of depreciation and interest offsets
·          Repayments are constant for the term of the loan, and are totally tax deductible
·          Loan is secured by the vehicle

Commercial Hire Purchase

If your business or company using the “accruals” method of accounting, then a commercial hire purchase may be suitable for your needs.

·          Term of loan usually ranges from 36 to 60 months
·          The interest component of the loan repayments may be claimed as a business tax deduction
·          The depreciation is claimable as a business tax deduction
·          Payments and terms can be structured to match revenue periods (ideal for seasonal businesses)
·          Payments can remain constant over the term of the loan, allowing you to plan your cash flow and insulating you from changing markets

Vehicle Lease

When leasing a vehicle the company purchases it and leases it back to you over a fixed term.  At the end of the term you can choose to pay out the residual, trade the vehicle in, or refinance the residual amount owing for a further period of time.

·          Term ranges from 24 to  over 60 months
·          Repayments are totally tax deductible
·          Depreciation cannot be claimed by the borrower
·          Lease payments are fixed allowing you to plan your cash flow
·          Repayments can be direct debited from your bank account

Plant & Equipment

For specialised businesses with plant & equipment needs, such as transport, and earth-mowing machinery.