A free equipment finance checklist from The Finance Yogi to compare chattel mortgage, lease and hire purchase on cost, tax, GST and ownership.
Choosing between a chattel mortgage, lease and hire purchase can save or cost your business real money. This free checklist compares them on the points that matter.
Ownership, tax, GST and total cost all differ across the three, so running this comparison before you sign helps you choose the right structure.
As your local Perth broker, The Finance Yogi compares equipment finance across lenders and structures to suit your tax position.
The three main structures differ in who owns the asset, how GST is treated, and how the deductions work. The right one depends on your GST status, accounting method and cash flow.
Running a simple comparison before you commit avoids locking into a structure that does not suit how your business accounts for things.
Work through the checklist below, ideally with your accountant, and we will arrange the finance.
The cheapest headline rate is not always the best deal once tax and ownership are factored in.
Use this checklist, and we will compare lenders and structures to find what leaves your business best off.
Ownership is the first decision. Chattel mortgage and hire purchase lead to ownership; a straight lease does not. See the detail in our chattel mortgage vs lease guide.
Your accounting method – cash or accruals – also affects which suits best.
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After 10 years inside the Big Four banks, I saw how many Perth families missed out or borrowed with the wrong lender. The Finance Yogi exists to change that - we compare the whole market and explain every number in plain English.
A chattel mortgage lets you claim the GST on the purchase upfront, plus depreciation and the interest portion of repayments. A lease is often fully deductible as a rental expense.
Check too whether the asset qualifies for the instant asset write-off – a permanent $20,000 per asset from July 2026 for eligible small businesses – which can let you deduct the cost immediately.
Important: always confirm the tax treatment with your accountant. We explain the options on our equipment finance broker Perth page.
Look beyond the monthly repayment to the total cost over the term, including any balloon or residual payment at the end, fees, and the effect of the tax treatment on your after-tax cost.
A structure with a higher repayment but better tax outcome can work out cheaper overall. We compare lenders on the full picture, not just the headline rate.
We find the sharpest overall deal for your business. See the full service on our equipment finance broker Perth page.
Work through the final list below, ideally with your accountant, and you will know which structure suits your business.
We then compare lenders, arrange approval, and coordinate settlement with your supplier.
Run this comparison and choose with confidence. For the full picture, read our complete equipment and asset finance guide, or explore our finance services.
Book a free, no-obligation chat and we will match the structure to your tax position and cash flow.
Source: business finance guidance from business.gov.au, and write-off details from the ATO. Tax is specific – confirm with your accountant.
