Finance Lease Australia
Lower repayments. Flexible end-of-term options. 100% deductible.
A finance lease lets your business use equipment, vehicles, and machinery with lower monthly payments. The lender owns the asset during the lease, and your payments are 100% tax deductible. Flash Funding compares 40+ lenders to find your best lease rate.
Start with the best matching product path, then continue via the secure customer portal.
What Is a Finance Lease?
A finance lease is a commercial arrangement where a lender purchases an asset on your behalf and leases it to your business for an agreed period. You have full use of the asset throughout the lease term, but the lender retains legal ownership until the lease ends.
At the end of the lease, you typically have several options: purchase the asset for the pre-agreed residual value, extend the lease, return the asset, or upgrade to a newer model. This flexibility makes finance leases popular for businesses that like to keep their options open.
Finance leases are particularly attractive because the lease payments are 100% tax deductible as a business operating expense. This differs from chattel mortgages where only the interest and depreciation components are deductible. For many businesses, this simplifies tax reporting and maximises deductions.
How a Finance Lease Differs from Other Structures
The key difference between a finance lease and a chattel mortgage is ownership. With a chattel mortgage, your business owns the asset from day one. With a finance lease, the lender owns it and you are essentially renting it with options at the end.
Finance leases typically have lower monthly payments than chattel mortgages because a portion of the asset value is deferred to the residual (balloon) at the end of the term. This preserves your monthly cashflow while giving you full use of the asset.
It is important to note that GST-registered businesses cannot claim the GST on the purchase price upfront with a finance lease (unlike a chattel mortgage). However, the GST is included in each lease payment, which is then fully deductible. Your accountant can advise on which structure best suits your tax position.
When to Choose a Finance Lease
Finance leases work best for businesses that prioritise lower monthly payments and cashflow management over asset ownership. They are popular for high-value equipment, fleets of vehicles, and technology that may need upgrading at the end of the term.
Businesses that are not GST registered often find finance leases more attractive than chattel mortgages since the GST claiming advantage of a chattel mortgage does not apply. Finance leases offer a clean, fully deductible payment structure.
Operating businesses that view equipment as a tool rather than an investment often prefer leases. If your priority is having the right equipment to generate revenue — rather than building equity in assets — a finance lease may be the optimal structure.
How It Works
Choose Your Asset
Select the equipment, vehicle, or machinery your business needs.
Lease Matching
Flash Funding compares lease rates from 40+ lenders.
Start Using It
The lender purchases the asset. You take delivery and start using it immediately.
End-of-Lease Options
Purchase the asset, extend, return it, or upgrade at the end of the term.
Key Benefits
100% Deductible
The entire lease payment is tax deductible as a business operating expense.
Lower Repayments
Deferring value to the residual keeps monthly payments lower than ownership structures.
Flexible End Options
Buy, extend, return, or upgrade at the end of your lease. Keep your options open.
Preserve Cashflow
Lower monthly outgoings mean more working capital for your business operations.
Eligibility Requirements
Example Finance Scenario
A logistics company leases a fleet of 5 new Isuzu NLR trucks for local delivery operations.
Fleet Value
$500,000
Term
4 years
Monthly Payment
~$9,200
Residual Value
30%
Lease payments are 100% tax deductible. At end of term, the company can purchase, extend, or upgrade. Example only.
Frequently Asked Questions
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