Business Vehicle Finance

Chattel Mortgage Australia

The smart choice for ABN holders. Claim GST upfront, enjoy tax deductions on interest and depreciation, and own your business vehicle from day one.

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Tax Benefits of Chattel Mortgage

Chattel mortgage is one of the most tax-effective ways for businesses to finance vehicles and equipment in Australia.

Claim GST Upfront

Claim the GST on the vehicle purchase price at your next BAS

Tax Deductions

Interest payments and depreciation are tax deductible expenses

You Own the Vehicle

The asset is registered in your name from day one

Flexible Balloon

Reduce monthly payments with an optional balloon/residual payment

How GST Claims Work

One of the biggest advantages of chattel mortgage is the ability to claim GST upfront. Here's an example of how it works:

Vehicle Price (inc GST)$60,000
GST You Can Claim$5,454
Net Cost to Business$54,546
Example Monthly Payment~$950/month

* Example only. Actual payments depend on term, rate, and balloon. Speak to your accountant about your specific tax situation.

Australian business owner reviewing finance paperwork beside a work van

Business finance

Claim back GST

On your next BAS

Who Can Get a Chattel Mortgage?

Chattel mortgage is available to a wide range of business structures.

ABN holders
Sole traders
Partnerships
Companies
Trusts
GST registered businesses

Chattel Mortgage vs Finance Lease

Understanding the difference helps you choose the right option for your business.

Feature
Chattel Mortgage
Finance Lease
GST claim timing
Upfront on purchase
Spread over term
Vehicle ownership
You own it
Lender owns it
On balance sheet
Yes (asset & liability)
Operating lease may be off
End of term
Yours to keep
Return or refinance
Best for
GST-registered businesses
Non-GST registered

Chattel Mortgage FAQs

Common questions about chattel mortgage finance for businesses.

What is a chattel mortgage?

A chattel mortgage is a type of business vehicle finance where the lender provides funds to purchase a vehicle, secured against the vehicle itself. You own the vehicle from day one, and the lender holds a mortgage over it until the loan is repaid.

Who can get a chattel mortgage?

Chattel mortgages are available to ABN holders including sole traders, partnerships, companies, and trusts. You typically need to be registered for GST to claim the full tax benefits.

How does GST work with chattel mortgage?

With a chattel mortgage, GST-registered businesses can claim the GST component of the vehicle purchase price upfront in their next BAS. This provides an immediate cash flow benefit.

What's the difference between chattel mortgage and novated lease?

A chattel mortgage is for business use only and requires an ABN. A novated lease is for employees who salary package a vehicle through their employer. Both have tax benefits but work differently.

Can I have a balloon payment with a chattel mortgage?

Yes, you can include a balloon (residual) payment at the end of the term. This reduces your monthly repayments during the loan term but means you'll have a larger final payment.

Business Finance Lenders

We compare chattel mortgage rates from leading business finance providers.

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