Chattel Mortgage

Chattel Mortgage

A tax effective business finance tool.

A chattel mortgage is basically a business loan where the borrower actually takes ownership of the goods upon payment by the financier. All of the GST is often claimed back in the business' first BAS.

Advantages and applications.

It is business finance solution for acquiring movable items. These may be relatively large assets which will generally have service life of several years or more.

  • Manufacturing machinery.
  • Cars, trucks and commercial vehicles.
  • Computers and IT systems.
  • Cranes and construction equipment.

Who can benefit most.

This is ideal for smaller businesses who are under the simplified tax system (STS) and have a turnover less than $2 million. You are able to pool assets and claim the one depreciation rate of 15% in the first year and 30% diminishing value after that, no matter what type of asset is being financed.

Tax situation.

With a Chattel Mortgage, the depreciation benefit is quite attractive to businesses who report GST on a cash basis, as you are entitled to claim the GST in full. You can also claim depreciation on the asset and the interest on the loan, but you’ll have to pay stamp duty up front.


The security is the asset itself and the financier takes a mortgage over that asset, which means there is a charge registered against your company.

Complete a Chattel Mortgage application without obligation, click here. Or phone +61 (2) 9212 0799 to talk with one of our business finance experts.

Contact Us:
+61 (2) 9212 0799

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