Equipment Finance Tax Benefits in Australia
Financing business equipment in Australia can provide significant tax benefits. Understanding these benefits can help you make a more informed finance decision.
Instant Asset Write-Off
Under the instant asset write-off provisions, eligible businesses can immediately deduct the full cost of qualifying assets, potentially reducing your taxable income in the year of purchase. Check the ATO website for current thresholds.
Depreciation Benefits
Assets financed via a chattel mortgage, hire purchase, or finance lease may be depreciated over time, providing ongoing tax deductions. The method and rate of depreciation depends on the asset type and your tax situation.
GST Credits
If you are registered for GST, you may be able to claim the GST component of a chattel mortgage or hire purchase as an input tax credit in your BAS, potentially saving 10% of the asset cost upfront.
Interest Deductions
Interest paid on business finance is generally tax-deductible. This applies to chattel mortgages, hire purchase, and lease agreements used for business purposes.
Get Started
Speak with The Asset Financing to explore which equipment finance structure best suits your tax situation.
Contact The Asset Financing at theassetfinancing.com.au/contact