Tax and GST Implications
Taxation & GST on Finance Contracts
| Product | Chattel Mortgage | Commercial Hire Purchase | Finance Lease | Operating Lease |
|---|---|---|---|---|
| Do payments include GST? | No | No | Yes | Yes |
| Can you claim GST on equipment financed? | Yes | Yes | No | No |
| Are payments tax deductible? | No | No | Yes | Yes |
| Is interest tax deductible? | Yes | Yes | No | No |
| Can you claim depreciation on the equipment financed? | Yes | Yes | No | No |
The above is only applicable to equipment financed that is predominantly for business purposes.
*The information provided does not take into account your specific circumstances. We strongly urge you to consult your tax adviser regarding any taxation matters.