Vehicle & Equipment Finance

At Financial Milestones, we combine our finance skills with our taxation knowledge to offer you the right choice of finance product for your vehicle or equipment purchase. If you have any questions about how to best structure your vehicle and equipment finance for tax purposes, please contact us.

Many people ask us about the different types of vehicle and equipment finance that are available. We have explained some of these below. To find out which type of finance would best suit your needs, call us on 07 3396 7757.

Finance Lease (Car Lease)

A Finance Lease enables a borrower to the use and other ownership benefits of a car, commercial vehicle or equipment, while the financier retains actual ownership. The rental payments are tax deductible and GST input credits are received on the payments made per BAS period.

Commercial Hire Purchase (CHP)

Commercial Hire Purchase (CHP) is a commercial finance product where a business "hires" a car, commercial vehicle or equipment from the financier for a fixed monthly repayment over a term, and has the option to purchase the item at the end of the term. Interest and depreciation are deductible each year and GST input credits are received on the payments made BAS period.

Chattel Mortgage

A Chattel Mortgage is a commercial finance option under which a financier loans money to purchase a car, commercial vehicle or equipment (chattel), and then secures the loan with a mortgage over the item. Interest and depreciation are deductible each year and GST input credit is received on the purchase price of the vehicle or equipment in the applicable BAS period.

Novated Lease (Salary Packaging)

Novated Lease is a method of salary packaging a car, under which an employee leases a car and their employer pays the lease repayments from their pre-tax income. Novated Leasing can be a tax-effective way for an employee to purchase a vehicle, and can also be a great way for employers to offer an extra incentive to their employees with little or no extra cost.

Secured Personal Car Loan

A Personal Car Loan is a type of loan where the financier lends money for the purchase of a vehicle that is not used more than 50% for tax deductible purposes and the lender takes security over the vehicle to protect the loan.

Unsecured Personal Car Loan

An Unsecured Personal Car Loan is a type of loan where the financier lends money for the purchase of a vehicle that is not used more than 50% for tax deductible purposes and the lender does not take security over the vehicle to protect the loan. The interest rates are generally much higher for this type of loan.