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 31 July 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.

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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
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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
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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 Claim upfront Claim monthly Claim monthly
Depreciation Claim Yes (you're the owner) No No
Interest Deductible Yes N/A (rental deduction) N/A (rental deduction)
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
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 type of secured business loan where the asset itself is the security. Unlike a personal loan, you own the asset immediately while making repayments. The "mortgage" (charge) over the chattel (moveable asset) is removed once the loan is paid in full. It's the most common structure for ABN holders financing equipment in Australia. Most major banks now market this product as a "commercial goods loan" or "business loan — goods" — but it's the same structure.
Is a commercial goods loan the same as a chattel mortgage? ▼
Yes — they are identical products. Australian banks have rebranded their chattel mortgage offerings under names like "commercial goods loan" (CBA, Westpac) and "business loan — goods" (NAB). The ownership, GST treatment, interest deductions, depreciation, and balloon payment options are all the same regardless of the name your bank uses.
Can I switch structures during the finance term? ▼
Generally no — the structure is set at the time of settlement. However, you can refinance into a different structure at any time (subject to payout costs and new lender approval). If you're unsure which structure to choose, our calculator and broker partners can help you make the right decision upfront.
Do I need to be registered for GST? ▼
You don't need to be GST-registered to get asset finance, but it changes which structure is best. GST-registered businesses benefit most from chattel mortgages (upfront GST credit). Non-GST businesses may prefer a finance lease or commercial hire purchase. Our calculator adjusts the comparison based on your GST status.
What is a balloon or residual payment? ▼
A balloon (chattel mortgage) or residual (lease) is a lump sum due at the end of the finance term. It reduces your regular repayments during the term. Typical values are 20–40% of the purchase price. At the end of the term, you can pay the balloon/residual to own the asset outright, refinance it, or trade in the asset.

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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