Under a Finance Lease, the Financier purchases the equipment of your choice in exchange for a series of rental payments at the end of which you have the opportunity to acquire the vehicle or equipment at the end of the lease agreement for a pre-set purchase amount – (Residual Value).

Leasing is the most common type of finance business operators and owners utilise to acquire business equipment and vehicles including cars, vans, trucks, construction equipment, mining equipment, farming machinery and other equipment like manufacturing equipment, cool rooms, office equipment and furniture, computer systems, medical equipment and solar solar energy systems.

Leasing offers great benefits including flexibility and enables business operators to utilise existing funds in profit generating activities.


  • You select the equipment of your choice and range of options you require.
  • You negotiate the price of the equipment as if you were paying cash.
  • You select the term of the lease (1-5 years) and the frequency of the payments.
  • At the outset a residual value is set (which is an estimate of the worth of the equipment at the end of the lease period, calculated using Australian Tax Office effective life and depreciation guidelines).
  • The Financier purchases the equipment on your behalf.
  • Rentals are then paid to the financier.
  • At the end of the lease you then have an option to:
    • Make an offer to purchase the equipment for the residual value, although the lease agreement does not provide you with the right to purchase the equipment.
    • Return the equipment to the financier for sale, although you will be required to meet any shortfall if the sale proceeds do not meet the residual value.
    • Trade in the equipment and lease a new one.


  • Rentals may be fully tax deductible if the equipment is used to generate taxable income.
  • You have immediate use of the equipment with no capital outlay.
  • You can choose your own supplier and negotiate price independently.
  • Direct debiting of your monthly payments can be arranged saving you time and money.
  • Allows for regular upgrading of your equipment.
  • Revenue Generated from the use of the vehicle or equipment may make it self-financing.
  • Monthly Lease Rentals are subject to 10% GST. Therefore you can claim them as a “Tax Input Credit”.