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Chattel Mortgage

A Chattel Mortgage is an ideal way for individual business customers to maximise the taxation benefits gained from financing a new vehicle.

A Chattel Mortgage is designed for those sole traders and partnerships who account for their business operations on a cash basis and can be used for purchasing a new vehicle or upgrading an existing vehicle.

GST

Under both a Chattel Mortgage and Commercial Hire Purchase agreement, the Goods and Services Tax (GST) is contained in the purchase price of the vehicle, but does not apply to the monthly repayment or balloon (final instalment) on the contract.

Normally, those individual business customers who are registered for GST purposes and enter into a Commercial Hire Purchase agreement will apply Input Tax Credits (ITCs) to claim back some or all of the GST (up to a maximum amount of $5,183) contained in the price of the motor vehicle. A Chattel Mortgage is well suited to those individual business customers who account on a cash basis. Individual business customers accounting on a cash basis can claim back the GST as soon as they lodge their next Business Activity Statement (BAS).

Would you like more information?

You can give us a call on (03) 5051 0400 or fill out the form and we’ll have an expert consultant get back to you