Chattel mortgage, finance lease, or operating lease? Understand the ownership, tax, GST, and cash-flow differences — then use our calculator to see real numbers for your asset.
| Feature | Chattel Mortgage | Finance Lease | Operating Lease |
|---|---|---|---|
| Legal Ownership | You (borrower) from day 1 | Financier during term; you at the end | Financier (always) |
| GST Treatment | Claim 100% upfront on BAS | Claim GST on each payment | Claim GST on each payment |
| Depreciation | You claim depreciation (owner) | Financier depreciates | Financier depreciates |
| Interest / Rental Deduction | Interest is deductible | Entire rental payment deductible | Entire rental payment deductible |
| Balloon / Residual | Optional (0–50%) | Mandatory (ATO minimum) | Built into the lease; no purchase option |
| Balance Sheet | Asset + liability on balance sheet | Off-balance sheet (AASB 16 may change this) | Off-balance sheet |
| End of Term | Own outright (or pay balloon) | Pay residual to own; or refinance/trade | Return, extend, or upgrade |
| Instant Asset Write-Off | Eligible (as owner) | Not directly (financier claims) | Not directly |
| Best For | GST-registered businesses keeping the asset long-term | Cash-flow optimisation, medium-term assets | Short-term fleet, tech that depreciates fast |
| Typical Use Cases | Trucks, utes, earthmoving, farm equipment | Vehicles, equipment fleets | IT equipment, vehicles, fitouts |
Enter your asset price, term, and rate — our calculator shows repayments and tax savings for all three structures.
Open Calculator →Full guide: how it works, who it suits, tax benefits, pros & cons, and worked examples.
Read Guide →Full guide: how it works, residual obligations, tax treatment, and when to choose a lease.
Read Guide →Full guide: how it works, who it suits, fleet considerations, and true-cost analysis.
Read Guide →