No More Receipts & Maximise your tax refunds.

Small business owners or sole traders have enough to do without having to manage their vehicle expenses, keep all the receipts, and understand what can be claimed and when to claim it.

We package all of the running costs to one simple expense card. Pay all vehicle running costs on this card while we manage all the expenses and provide you with a monthly report to claim every cent in tax and GST, providing valuable additional cash flow.

If you use a vehicle for work try our calculator.

If you drive a vehicle wholly and predominantly for work purposes, enter your vehicle price (new or used), your average annual earnings, finance term, deposit (not required) and final balloon (not required), or click on one of the specific vehicle specials. If you’re happy with the numbers and want a detailed quote or need to know more, we’re always here to help. Click on the button below to book a session with one of our specialists at a time that suits you.

No More Receipts & Claim Every Cent in Tax!

Every vehicle needs fuel, insurance, registration, servicing and a set of tyres at some point.

We package all of this together in one simple expense card. Convenient and simple, you drive while we manage all the expenses and provide monthly reporting so that you can claim every cent in tax and GST.

No more tracking receipts or missing tax claims.

We help you maximise your BAS period returns, with one monthly payment that covers all vehicle expenses. Simply hand the report to your accountant or tax agent every month and benefit in every BAS return.

Just drive your car and use our expense card for running costs.

Our expense card can be used for fuel, tyres, servicing, even windscreens and batteries. The bill comes back to us for payment, and at the end of the month, you get a detailed report showing every single cent spent, making claiming this back easy and 100% ATO compliant.

Frequently Asked Chattel Mortgage Questions

Here are some common questions Australians have about Business Use Vehicles and the finance component call a chattel mortgage

This is one of the most common questions, and the answer depends on several factors, including your business structure and how you use the vehicle. Generally, you can claim a deduction for expenses related to the business use of your vehicle. This can include:

Running costs: Fuel, oil, repairs, servicing, registration, and insurance.

Capital costs: Depreciation (decline in value) of the vehicle.

Interest on a car finance payments.

It is crucial to differentiate between business and private use. You can only claim the portion of expenses related to business use. Our calculator assumes you are using this vehicle wholly and predominantly for business use and the private use is minor and infrequent.

Summary of Differences:

1. Purpose and Eligibility: A Chattel Mortgage is a specialised business finance product. To qualify, the car must be used primarily for business purposes. A normal car loan is generally for individuals buying a car for personal use.

2. Tax Benefits: This is the biggest drawcard for a chattel mortgage. Businesses can often claim the GST on the purchase price upfront, deduct the interest paid on the loan, and claim depreciation on the vehicle as a business asset. Normal personal car loans offer none of these deductions.

3. Regulation: Consumer car loans fall under the NCCP Act, which offers more consumer protection regarding fees, charges, and ensuring the loan is “not unsuitable” for your circumstances. Chattel mortgages are not under this act, which provides less consumer protection but can allow for a quicker, more flexible application process for businesses.

For any financial decision, especially involving tax implications, it is highly recommended to seek professional advice from an accountant or financial advisor.

Here’s a breakdown of the key distinctions:

Primary Use

CM – Business Use (Vehicle must be used predominantly for business, generally 50% or more).

CL – Personal Use (Though businesses can use them, they are generally designed for individuals).

Borrower Type

CM – Businesses, including companies, trusts, partnerships, and sole traders.

CL – Individuals or joint borrowers.

Regulation

CM – Not regulated under the National Consumer Credit Protection (NCCP) Act.

CL – Regulated under the NCCP Act.

Tax Implications

CM – Generally offers significant tax advantages for businesses (GST claim on purchase price, claiming depreciation, and interest on the loan). Consult an accountant.

CL – Generally, no tax deductions are available as it is a personal expense.

Ownership

CM – The borrower (the business) owns the vehicle from the start.

CL – The borrower owns the vehicle from the start.

Security

CM – The lender takes a “mortgage” or security interest over the vehicle (the “chattel”). This is a secured loan.

CL – Often a secured loan (the car is collateral), but unsecured options exist (which usually have higher interest rates).

Interest Rates & Fees

CM – Can sometimes have lower interest rates and more flexible terms due to being a business product and secured.

CL – Interest rates can be higher, especially for unsecured loans. Often has standard fees.

Yes, chattel mortgages are usually a business-ready product (designed for commercial use), allowing GST-registered businesses to reclaim the GST credits on the purchase price and enjoy interest deductions.

We take the vehicle drivaway price and term of the finance, factor in any deposit or balloon payment you would like to include and calculate the finance payment. We then add an estimate of all the vehicle running costs, including fuel/charge, tyres, scheduled services, registration and insurance renewals. This gives us a total vehicle cost over the tax year, by applying ATO tax deductions for the running costs, depreciation and interest, as well as deductions for GST, we provide you with the average cost of that vehicle after tax. For a detailed estimate on your personal circumstances, please book a time with one of our specialists.

Most lenders offer extra repayments, which can help reduce the term of your loan and the overall interest to be paid. Yet, to avoid any additional contract break costs, don’t hesitate to get in touch with us or the financier for a current payout letter.

For business vehicles, the interest paid each month is tax-deductible, as well as depreciation on the vehicle value each year. Get a detailed estimate from one of our specialists and discuss the results with your tax expert on what specific tax deductibility benefits are available.

Still have questions? Contact one of our specialists who can answer all your questions and provide a details no obligation quote..

Calculator & Product Terms of Use.

1. Your Income Estimate

To provide an estimate of your potential tax savings, we rely on the “Annual Taxable Income” information you provide to be accurate. You may need to consult with your tax professional to obtain this figure.

2. Record Keeping & Supporting Documents

Evidence for Claims, How Long to Keep Records and Accuracy and Compliance: You must retain appropriate documentation to support any claims made in relation to tax deductions or business use. Please refer to the ATO website for more information or talk to your tax professional.

3. Staying Informed

Tax rules and obligations can change. It’s your responsibility to stay up to date with current tax legislation. Always consult the ATO website or speak with your registered tax agent or accountant for advice tailored to your personal financial situation.

4. About This Estimate

This document is provided as a general estimate only.

1. The estimated vehicle running costs are based on the vehicle make and model, and the annual travelled km allowance you have chosen. These budgets can vary over the finance term due to inflationary price rises and a change in your km’s travelled. You always have the option to amend your budgets throughout the term.

2. Incidental Vehicle Costs – This estimate does not include incidental car costs such as car washes, minor repairs to dents and scratches. Paying for these costs from the set budgets within this estimate will affect the set budget items and may result in budget changes over the finance term.

3. Projected income tax savings based on the annual taxable income estimate you’ve supplied. These tax savings do not take into account your other personal financial income or expenses. Please talk to your tax professional before making any decision on this estimate.

4. This estimate is based on current ATO income tax and GST rates. If these rates change, your tax savings will be affected.

5. This estimate shows the effect of total tax savings over a weekly and a monthly period. Depending on the timing of your tax/accounting period, your net vehicle cost or cash position may vary from the estimate. For example, if you do your tax refunds on an annual basis, you will only see the tax benefit annually. If you do tax variations and/or BAS returns quarterly, you will see the tax benefit quarterly. Please talk to your tax professional before making any decision on this estimate.

5. This is an estimate only, not a legally binding contract.

This estimate does not create any legally binding obligations for either party. We recommend discussing this estimate with your accountant or tax advisor before making any financial decisions.

6. All Information is General Advise Only

The information and any advice provided within this estimate is ‘general advice’ only. This means that the advice has been prepared without taking into account your full personal objectives, financial situation, or needs. It is not intended to be a substitute for professional taxation advice from a licensed accountant or tax advisor who can consider your unique circumstances.

7. The information is provided in good faith and is believed to be accurate and reliable at the time of preparation.

Vehicle Solutions Australia can not guarantee the accuracy, completeness, or timeliness of the information over the term of the finance, as your personal financial circumstances, such as income and expenditure, can change. We recommend discussing this estimate with your accountant or tax advisor before making any financial decisions.