Vogue Financial Solutions can organize all your equipment & vehicle finance needs.

Different types of finance for equipment and vehicles include the following.

Finance Lease

A Tax effective method of financing the full value of an eligible new or used asset.

Who owns the asset?: The Lender
Depreciation: Claimed by lender
Tax deductibility for customer: Lease rental deductible if asset used for income producing purposes
GST (applicable to finance contract): Payable on each rental amount and the residual payment

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Novated Lease

A lease is originally taken out by the employer, and then lease is novated to the employer.

Who owns the asset?: Lender
Depreciation: Claimed by lender
Tax deductibility for customer: Employer (as novated lessee) can claim deduction for lease payments. Employee cannot claim any deduction for lease rental.
GST (applicable to finance contract): Payable on each rental amount and the residual payment.

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Lease of Luxury Cars

A finance lease, structured lease or novated lease of a luxury car, i.e. car with costs > $57,009.

Who owns the asset: Lender
Depreciation: Customer (or novated lessee) claims the depreciation which is limited to amount calculated on $57,009 and not actual cost of car.
Tax deductibility for customer: interest and depreciation calculated on $57,009 and not the actual cost of the car
GST (applicable to finance contract): Payable on each rental amount and the residual payment.

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Commercial Hire Purchase (Chattel Mortgage)

A method of financing the acquisition of an eligible new or used asset. This type of finance enables the client to own the asset and the end of the finance term. All other types of leases the lender or financial institution owns the asset.

Who owns the asset: Customer (after the end of the finance term)
Depreciation: Customer claims
Tax deductibility for customer: interest on payments and depreciation if asset used for income producing purpose
GST (applicable to finance contract): payable up front on amount financed. Upfront GST can be financed.

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