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Commercial Hire Purchase

Commercial Hire Purchase agreements are typically used by individual business customers who wish to place a deposit into their finance contract, or nominate the value of the balloon (final instalment) on their contract.

This type of contract offers maximum flexibility to set the monthly repayment amount to suit your individual circumstances.


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