Leasing is a very tax beneficial way to obtain equipment finance. A Lease is an arrangement between the finance company (the lessor) and the client (the lessee); whereby the finance company agree to rent a particular piece of equipment over generally a set term with a predetermined residual value.

The Lessor obtains legal ownership of the equipment to be leased, by paying the amount as advised on the supplier's invoice. The Lessee then has the use of the equipment and pays rent for that use for the term of the finance lease agreement. During the term of the finance lease agreement, the Lessee merely pays rent and does not obtain ownership or equity in the equipment they are leasing. Under a finance lease agreement, the Lessee is responsible for all maintenance and running costs, equipment insurance and registration fees for the leased equipment.

Finance Lease Benefits:

• No establishment fees, monthly fees and no payout penalties.
• Terms from 1 to 5 years fully amortised or with a predetermined balloon payment at the end.
• Fixed interest rates and set monthly repayments.
• No need for a deposit.
• 100% of the Finance Lease is claimable. Note FBT maybe payable.
• GST on the purchase price of the vehicle is claimed back by the finance provider on your behalf. This lowers the amount financed to the purchase price minus GST.
• Customers registered for GST can claim the GST on the monthly finance lease payments.
• Lower interest rates due to the finance lease being secured against the equipment.