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Asset Finance Australia

Vehicles, equipment, plant and machinery for your business. The right structure here means better cash flow, potential tax advantages depending on your business structure, and repayments that match how your business actually generates income.

Calculate repayments Structure this properly

Reviewed by Jonathan Al Aaraj · October 2026

Asset Finance Calculator

What will your repayments look like?

Enter the asset details, your deposit and expected rate. Include a balloon if you want lower monthly repayments with a residual at the end.

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Varies by lender — [TODO: confirm typical fee]

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Monthly repayment
$1,554
per month (est.)
Amount financed $72,000
Balloon / residual $0
Total interest —
Total repaid —
Total cost incl. fees —
Structure this properly →

Results are indicative only. Rates vary by lender, asset type and credit profile, and are not a quote, approval, or offer of credit.

How it works

The four main types of asset finance

Chattel mortgage

The most common structure for business vehicles and equipment. You take ownership of the asset upfront (unlike a lease), and the lender holds a mortgage over it as security. GST-registered businesses may be able to claim the GST component upfront, and depreciation and interest may be deductible as business expenses. Confirm what applies to your situation with your accountant. Generally suits businesses that want to own the asset outright at the end.

Finance lease

The lender buys the asset and leases it to you for a fixed term. You're responsible for maintenance and insurance. At the end of the term, you typically have the option to buy the asset at residual value. Off-balance-sheet in some structures, speak to your accountant about the accounting treatment. Repayments may be tax-deductible as an operating expense (speak to your accountant).

Operating lease

Similar to a finance lease but the lender retains residual value risk. Common for vehicles and technology that depreciate quickly. Lower repayments because the lender is betting on residual value. At the end, you return the asset, renew, or buy at market value. Suits businesses that want to upgrade regularly.

Commercial hire purchase (CHP)

You hire the asset from the financier until the final payment, at which point ownership transfers. Repayments include both principal and interest; the interest component and depreciation may be deductible — confirm with your accountant. Less common now, largely superseded by chattel mortgage, but still used in some industries.

Tax and GST — general information only
References to tax deductibility and GST treatment on this page are general in nature and do not constitute tax advice. The tax treatment of asset finance depends on your specific business structure, GST registration, and individual circumstances. Always speak with a qualified tax adviser or accountant before making decisions based on tax considerations.
The balloon payment question
A balloon (residual) payment reduces your monthly repayments by deferring a portion of the principal to the end of the term. It's useful for cash flow management, but you need a plan for the balloon. Either pay it out, trade the asset in, or refinance. We factor this into the structure conversation.
Structure this properly
The right structure depends on your business, your GST position, and whether you want to own the asset at the end. Let's work through it.
Get your real numbers Call 0422 101 112
Asset finance specialists

Let's structure your
next asset purchase properly.

The right structure saves you money on repayments and tax. Start with a conversation about what you're buying and how your business is set up.

Structure this properly Call 0422 101 112