Chattel Mortgage

A tax effective business finance tool.

A chattel mortgage is basically a business loan where the borrower actually takes ownership of the goods upon payment by the financier. All of the GST is often claimed back in the business’ first BAS.

Advantages and applications.

It is a business finance solution for acquiring movable items. These may be relatively large assets which will generally have service life of several years or more.

These include:

• Manufacturing machinery.
• Cars, trucks and commercial vehicles.
• Computers and IT systems.
• Cranes and construction equipment.

Who can benefit most.

This is ideal for smaller businesses who are under the simplified tax system (STS) and have a turnover less than $2 million. You are able to pool assets and claim the one depreciation rate of 15% in the first year and 30% diminishing value after that, no matter what type of asset is being financed.

Tax situation.

With a Chattel Mortgage, the depreciation benefit is quite attractive to businesses who report GST on a cash basis, as you are entitled to claim the GST in full. You can also claim depreciation on the asset and the interest on the loan, but you’ll have to pay stamp duty up front.

Security.

The security is the asset itself and the financier takes a mortgage over that asset, which means there is a charge registered against your company.

So why not enquire about a chattel mortgage today? If at any point you are not satisfied with any of our finance solutions; simply walk away with no cost. We are delighted to seek approvals as over 85% of them are taken up by clients!

You can complete our Chattel Mortgage application now, without obligation.

Or why not give us a call on 1800 358 658.
10 minutes is all it takes to obtain the majority of information required for an application!

Our Chattel Mortgage and Business Finance experts are ready to help!