Tailor-made for your gst edge

Chattel Mortgage Loans provide you ownership of the truck, while Volvo Finance takes a charge until the contract is paid out.

Businesses with a turn-over below $1 million who use the "cash method" of accounting generally consider Chattel Mortgage, as it enables them to claim the full GST input tax credit (ITC) up-front. Your loan can also be structured to fund the initial GST on your purchase and enable you to repay it in the same month you receive your ITC.

Benefits:

  • Spreads the cost of buying as the vehicle's earnings pay for its acquisition
  • Vehicle is shown as an asset on the balance sheet
  • Operators can claim depreciation allowances
  • Interest element of repayments can be offset against taxable profits
  • Operators with turnover below $1 million who use the "cash method" receive the ITC up-front


 

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