Asset Finance Australia 2026 | Compare Options & Apply
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Asset Finance Australia

Compare chattel mortgage, finance lease and operating lease by ownership, cash flow and end-of-term outcome. New to the category? Start with what asset finance is and how it works.

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David Blackman
Written and reviewed by David Blackman
Specialist Asset & Equipment Finance Broker • 20+ years banking and fleet experience
Reviewed 26 August 2026General information only
Finance structures

Three Ways to Finance Your Asset

Each structure has different ownership, tax, and cash flow outcomes. Choose the one that matches your business goals.

Chattel Mortgage

You own the asset from settlement while the lender takes security over it. Eligible GST-registered businesses may be able to claim GST credits, and the business-use portion of interest and depreciation may be deductible. Confirm eligibility and timing with a registered tax agent.

Also known as: commercial goods loan, business loan — goods

  • ✓ Immediate ownership
  • ✓ Potential eligible GST credit
  • ✓ Potential business-use deductions
  • ✓ Optional balloon payment

Finance Lease

The lender owns the asset and leases it to you. Eligible business-use lease costs may be deductible, subject to tax rules and the transaction. End-of-term options and the residual should be checked in the written terms.

  • ✓ Ownership at end of term
  • ✓ Modelled GST treatment monthly
  • ✓ Potential business-use deductions
  • ✓ Great for cash flow optimisation

Operating Lease

Effectively a long-term rental where the financier retains ownership. It may suit businesses that replace assets regularly, but price, service inclusions, usage limits and return conditions must be compared.

  • ✓ No residual risk — return the asset
  • ✓ Lowest weekly repayments
  • ✓ Potential business-use deductions
  • ✓ Ideal for fleet rotation
Side-by-side

Structure Comparison

See how each structure differs across ownership, tax treatment, GST, and suitability.

Feature Chattel Mortgage Finance Lease Operating Lease
Ownership Immediate At end of term Return to lessor
GST Treatment Eligible upfront credit may be available Eligible credits may arise with payments Eligible credits may arise with payments
Tax Depreciation Business may claim if eligible Lessor generally claims Lessor generally claims
Interest or Payments Eligible business-use interest may be deductible Eligible business-use payments may be deductible Eligible business-use payments may be deductible
Balloon / Residual Optional Mandatory residual Built-in
On Balance Sheet Yes (asset + liability) Yes (AASB 16) Yes (AASB 16)
Best For GST-registered, want ownership Cash flow optimisation Short-term use, fleet rotation
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By asset type

Finance Guides by Asset

Rates, terms, and structures vary by asset type. Explore the guide for your industry.

Trucks & Trailers

Trucks & Trailers

From $80k – $500k+
Utes & Commercial

Utes & Commercial

From $35k – $120k
Earthmoving

Earthmoving

From $50k – $800k+
Agricultural

Agricultural

From $40k – $600k+
Machinery & Fitouts

Machinery & Fitouts

From $10k – $500k
Electric Vehicles

Electric Vehicles

From $35k – $150k
Forklifts

Forklifts

From $15k – $200k+
Caravans

Caravans

From $25k – $150k+
Boats & Marine

Boats & Marine

From $15k – $300k+
Business Cars

Business Cars

From $25k – $150k
Marine Finance

Marine Finance

From $20k – $500k+
Medical Equipment

Medical Equipment

From $5k – $500k+
Solar & Renewable

Solar & Renewable

From $5k – $250k
Gym & Fitness

Gym & Fitness

From $5k – $200k
Hospitality

Hospitality

From $5k – $150k
IT & Technology

IT & Technology

From $2k – $100k
Hire Purchase

Hire Purchase

Commercial hire purchase
Horse Floats

Horse Floats

From $8k – $80k
Plan the transaction

From Structure Choice to Settlement

Use the page that matches the decision you are making. Eligibility, pricing and documents depend on the complete transaction; none of these guides is an approval promise.

Application Checklist

Applicant, entity, asset, seller, evidence, privacy and settlement checks.
Business Structure

Align sole trader, company, trust or partnership ownership before applying.
Refinance & Payout

Compare payout costs, security release, asset value and total future repayments.
Private Seller Checks

Verify seller, title, PPSR, payment details and settlement sequence.
Chattel Mortgage

Ownership, GST and tax questions, balloon risk and alternatives.
How Asset Finance Works

Start with the structure, security and end-of-term outcome.
Common questions

Finance Structure FAQs

Which structure is best for my business? ▼
It depends on ownership goals, cash flow, GST registration, expected holding period and end-of-term plans. A chattel mortgage can suit businesses that want ownership from settlement; lease structures can suit different cash-flow or replacement objectives. Compare written terms and obtain tax advice for your circumstances.
What's the difference between a loan and a chattel mortgage? ▼
A chattel mortgage is a secured business asset loan under which the borrower ordinarily owns the asset from settlement and the financier takes security over it. Similar-sounding product labels are not enough to establish that two contracts have the same ownership, tax, fee, balloon or payout terms, so compare the written agreement.
Is a commercial goods loan the same as a chattel mortgage? ▼
Sometimes the labels describe a similar asset-secured structure, but names are not standardised. Confirm who owns the asset, what security is taken, GST and tax treatment, fees, balloon terms, payout method and end-of-term obligations in the written contract.
Can I switch structures during the finance term? ▼
The structure is set by the signed contract. A replacement facility may be possible, but it is a new application and can involve payout amounts, fees, security releases, valuation and fresh approval. Compare the total cost and settlement sequence before changing facilities.
Do I need to be registered for GST? ▼
GST registration is not necessarily required for asset-finance eligibility. It can materially change cash flow and tax treatment, but it does not determine the best structure by itself. Input-tax-credit eligibility, timing and apportionment depend on the transaction and business use; confirm them with a registered tax adviser.
What is a balloon or residual payment? ▼
A balloon or residual is an amount left due at the end of the term. Deferring principal can reduce regular repayments but usually increases total interest and creates an end-of-term obligation. Availability, amount and end-of-term options depend on the asset, term, contract and approval.

Not Sure Which Structure Is Right?

Enter your asset details and our calculator will compare all three structures side-by-side — with tax estimates, repayment breakdowns, and eligibility scoring.

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