Chattel mortgage (also known as a Secured Load or Bill of Sales) is becoming more popular among small and large business because of its flexibility and it can offer a great tax deductible.

In Chattel mortgage, you own the goods, however the financier retains the title until the final payment, then mortgage is removed giving you ownership of the goods. Businesses who account for GST on a cash basis are entitled to claim an Input Tax Credit for all of the GST contained in the purchase price on their next Business Activity Statement.

Benefits of chattel mortgage:

• Depreciation and interest are tax deductible.
• Provides flexibility by allowing you to finance the full purchase price of the goods, include an upfront deposit or trade in.
• Claim back the GST component of the purchase price on your next BAS statement if you use cash.
• GST is not charged on the monthly repayments.
• The interest rate and monthly repayments are fixed for the term of chattel mortgage.
• Repayments can be either in advance or in arrears with the possibility of providing a “Balloon End Payment” option (no GST is charged on the Balloon payment).

For more information on chattel mortgage please contact LeasePLUS.