Under both a Chattel Mortgage and Commercial Hire Purchase agreement, the Goods and Services Tax (GST) is contained in the purchase price of the vehicle, but does not apply to the monthly repayment or balloon (final instalment) on the contract. Normally those individual business customers who are registered for GST purposes and enter into a Commercial Hire Purchase agreement, will apply Input Tax Credits (ITC’s) to claim back some or all of the GST (up to a maximum amount of $5,183) contained in the price of the motor vehicle.
To afford those individual business customers who account on a cash basis the same taxation benefits as those who account an accrual basis, with a Chattel Mortgage, individual business customers accounting on a cash basis can claim back the GST as soon as they lodge their next Business Activity Statement (BAS).
A Consumer Loan gives you more financial freedom. You use the loan money to finance the vehicle of your choice and so keep your own funds free for other purposes. We offer it on any new or used vehicle when the vehicle will be used wholly or predominantly for personal or private purposes.
The motor vehicle is the only security needed, although in some circumstances, a guarantee may also be required. During the period of the contract budgeting is made easier, as all payments are fixed.
A Consumer Loan is suitable when you use your vehicle wholly or predominantly for private purposes. This means that the vehicle is used privately for more than 50% of the time.
Where you can demonstrate some business use, you may be able to claim a tax deduction for that portion. For your added convenience, we can organise computer direct debiting of your monthly repayment from your nominated account.
The Goods and Services Tax (GST) is included in the purchase price of the vehicle but does not apply to Consumer Loans, and therefore input tax credits also do not apply to the finance contract.
Simply select the vehicle that best suits your needs, and then talk with our Business Manager. They can assist you to work out the appropriate loan period and monthly payment that best fits your lifestyle.
A novated lease is a three way agreement between the employer, employee and the Financial Services, and works as follows: The employee decides what type of motor vehicle they want, ie: new or used, sedan, wagon, 4x4, sports coupé etc, and after selecting the particular vehicle to suit their needs, enter into a finance lease with the Financial Services.
The employer, employee and the Financial Services all sign a Novation Agreement, whereby the employer agrees to take on the employee’s obligations under the lease. Under this arrangement, the employer makes the monthly lease payments, and provides the vehicle for the employee to use as part of a salary packaging arrangement.
Should employment cease for any reason, or the lease agreement reaches maturity, the Novation Agreement ceases and the obligations assumed by the employer, revert back to the employee.
Benefits of a Novated Lease Choice of vehicle
As a salary packaged vehicle is not part of the company fleet, employees can choose the make and type of vehicle (new or used) that best suits their needs.
The vehicle and finance lease are portable, and should an employee change jobs, they take both with them and simply enter into another Novation Agreement with their new employer, and the Financial Services.
As the lease is in the employee’s name, and lease payments are deducted from their salary package, they can realise any equity built up in the vehicle over the duration of the lease.
Through salary packaging a vehicle via an Novated Lease, employees can benefit from requiring a smaller portion of their income to run the vehicle, and enjoy a lower rate of tax on the benefit, than if they were to pay for the running costs of the vehicle using after tax income.
Motor vehicles can be an attractive component of any remuneration package because they are concessionally treated for Fringe Benefits Tax purposes.
Approved applicants only. Terms and conditions apply. PowerTorque Finance is a division of Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536.