If you are a sole trader or a PTY LTD body registered for GST and using the cash method of accounting, you may be able to claim back the GST on the purchase of the vehicle that you are buying in your next BAS statement.
Under a Chattel Mortgage agreement, you retain ownership of the vehicle not the finance company. This may mean that under certain circumstances you could potentially claim depreciation on the vehicle and claim the interest on the loan as a tax deduction also.
Whilst you own the car, the financier retains a security interest on the vehicle meaning that you are unable to sell the vehicle without first paying out the remaining balance on your loan, as is generally standard practice with any secured loan.
A Chattel Mortgage For a sole trader or individual is a relatively simple matter to setup. If you are a PTY LTD entity you will be required to complete and sign an ASIC form 309 and a 350 registering the security interest of the financier over the asset; this carries an additional ASIC fee of $135.00 paid directly to ASIC.
As part of our service to you we provide these forms pre-filled, and also lodge them on your behalf. This reduces the complexity of the process and reduces the amount of time you need to invest in the purchase of your new vehicle.
| Before making any decision regarding a financial product you must always consult a qualified person capable of taking into consideration all factors relating to your personal financial circumstances. The above information is for reference purposes only and does not pertain to your personal situation, nor is it a statement of advice in any way. Motorcore Finance PTY LTD accept no responsibility for any loss that may arise as a result of this information. |
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