Find the Perfect Fit for Your Business
We provide flexible fleet finance solutions designed to improve cash flow, support growth, and align with your business goals.
Find the Perfect Fit for Your Business
We provide flexible fleet finance solutions designed to improve cash flow, support growth, and align with your business goals.
Fleet Finance at a Glance
Select the right finance/leasing product that matches your business needs and cash flow.
Operating Lease
Fixed monthly costs with minimal risk.- Fully tax-deductible payments.
- Optional full-service management.
- Keeps debt off the balance sheet.
Finance Lease
- Lower monthly repayments.
- Tax benefits on interest and depreciation.
- Asset recorded on balance sheet.
- Option to purchase at lease end.
Chattel Mortgage
- Claim full GST upfront.
- Immediate asset ownership.
- Tax-deductible interest and depreciation.
- Ideal for cash-based businesses.
Operating Lease vs Finance Lease vs Chattel Mortgage
Compare the three structures side by side using the same product information presented on the Fleet Leasing Australia page.
| Feature | Operating Lease | Finance Lease | Chattel Mortgage |
|---|---|---|---|
| Ownership | Lessor retains ownership | Lessor owns the vehicle during the lease term | Your business takes legal ownership from day one |
| Monthly Cost Profile | Fixed monthly fee with predictable budgeting | Lower monthly repayments | Regular repayments, with optional balloon payment at the end of term |
| GST Treatment | Claimed progressively on each monthly payment | Claimed progressively on each monthly payment | Claimed upfront on the full vehicle purchase price |
| Tax Benefits | Lease payments generally 100% tax-deductible as an operating expense | Claim interest component and vehicle depreciation | Claim interest on the loan and depreciation of the vehicle |
| Balance Sheet | Often off-balance sheet under certain AASB 16 conditions | On-balance sheet under AASB 16 | Recorded on the balance sheet as both an asset and a loan |
| Residual / Resale Risk | Lessor takes on the residual value risk | Your business assumes the residual risk | Your business assumes full ownership and residual risk |
| Maintenance & Running Costs | Optional full-service management can include maintenance, registration, fuel, tyres, and more | Managed by your business | Managed by your business |
| Best For | Businesses that want cash flow flexibility, fixed monthly costs, and minimal risk | Businesses wanting lower monthly payments with the option to own later | Businesses wanting immediate ownership, upfront GST benefits, and long-term control |
Minimal Risk. Fixed Budgeting.
A simple rental agreement where the Lessor retains ownership. You pay a fixed monthly fee, which can include full-service costs (maintenance, registration, fuel, tyres, etc.), offering predictable budgeting and minimal risk.
How It Works
A fixed-term, fixed-cost rental arrangement. The Lessor owns the vehicle, and you simply rent it for the agreed term. At the end of the lease, you hand the vehicle back — the Lessor takes on the residual value risk, so you don't have to.
Operating leases are often off-balance sheet, offering low liability impact under certain AASB 16 conditions.
Financial & Tax Benefits
Maintenance & Management
Choose a Full-Service Lease and let the Lessor handle everything — from registration, servicing, and tyres to fuel management. This keeps your business running smoothly without the admin burden.
Who It's Best For
Perfect for businesses that want to:
- Enjoy predictable, fixed monthly costs
- Keep debt and assets off the balance sheet
- Turn over fleets frequently without worrying about resale value
Key Takeaway
An Operating Lease gives you cost control, flexibility, and peace of mind - all while keeping your vehicles up-to-date and your balance sheet light.
Flexibility with an Option to Own
A rental-style financing method with a mandatory residual value set within ATO guidelines. This structure keeps your monthly payments lower while giving you the option to purchase the vehicle at the end of the term.
How It Works
Under a Finance Lease, the Lessor owns the vehicle during the lease term. Your business (the Lessee) makes regular payments and has the option to buy the vehicle by paying the residual value at the end of the agreement.
You assume the residual risk, meaning your business is responsible for the final value at lease end. Finance leases are on-balance sheet, meaning the asset and liability are both recorded per AASB 16.
Financial & Tax Benefits
Maintenance & Management
Your business (the Lessee) manages all maintenance, registration, and running costs, giving you full control over the asset's condition and performance.
Who It's Best For
Ideal for businesses that:
- Want lower monthly payments
- Prefer flexibility with the option to own the asset later
- Are comfortable managing maintenance and residual risk
- Want to build equity in their business assets over time
Key Takeaway
A Finance Lease combines lower payments, ownership potential, and tax advantages - perfect for businesses that want flexibility today and ownership tomorrow.
Upfront Tax Advantage & Immediate Ownership
A commercial loan secured by the vehicle (the chattel). Your business takes legal ownership from day one, while the lender holds a mortgage over the vehicle as security.
How It Works
This structure works like a traditional secured business loan. The Lender provides funds to purchase the vehicle, and your business owns it outright. You make regular repayments, and at the end of the term, you may have a balloon payment (residual) to finalise the loan.
You assume full ownership and residual risk, giving you complete control over the asset. A Chattel Mortgage is recorded on the balance sheet as both an asset and a loan.
Financial & Tax Benefits
Maintenance & Management
Your business (the Lessee) manages all maintenance, registration, and running costs, giving you full control over the asset's condition and performance.
Who It's Best For
Ideal for businesses that:
- Use the Cash Method for BAS
- Want immediate ownership and control of the vehicle
- Seek an upfront GST refund and ongoing tax deductions
- Prefer to retain full responsibility for maintenance and resale value
Key Takeaway
A Chattel Mortgage gives your business ownership from day one, upfront GST benefits, and long-term asset control - ideal for those wanting both flexibility and financial efficiency.
Ready to optimize your business fleet?
Our specialists are ready to build a custom leasing strategy that aligns with your financial goals. Zero commitment, high impact.
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