Who should use chattel mortgage?

Businesses and self-employed individuals who use a vehicle primarily for work. The GST credit and tax deductions make it cost-effective when business use is 50%+.

What's the difference between chattel mortgage and car loan?

Mainly tax treatment. Chattel mortgage is a business finance product allowing GST credits and full interest/depreciation deductions. Regular car loans don't have these benefits.

Do I pay FBT on a chattel mortgage?

Only on the private use portion. If 100% business use (proven by logbook), no FBT. Any private use attracts FBT, which can be significant.

Chattel Mortgage Calculator

Calculator

Calculate business vehicle finance with chattel mortgage and tax benefits

Free to useNo data storedAI insightsUpdated: February 2026

Chattel mortgage is a popular business vehicle finance option. You own the car from day one, claim GST credits immediately, and deduct interest and depreciation. This calculator shows the after-tax cost.

Enter Your Details

Real-World Examples

Ute for Tradesman

$55,000 ute (inc GST), 5 years at 7%, 80% business use, 25% company tax rate.

Inputs Used:

price:55,000rate:7term:5businessUse:80taxRate:25

GST credit: $4,000. Annual depreciation deduction: ~$24,000 (instant write-off). Monthly repayment: $990. After-tax effective cost significantly reduced.

Frequently Asked Questions

Glossary

Chattel Mortgage

A business loan where the vehicle is security (chattel) but you own it from the start.

GST Credit

Businesses can claim back the GST component of the vehicle purchase (business portion).

Instant Asset Write-Off

Immediate tax deduction for eligible business assets (thresholds vary by year).

Logbook Method

Keeping detailed records to prove business vs private use for tax purposes.

Related Tools

Novated Lease Calculator

Alternative for employee vehicles

Car Loan Calculator

Standard personal car loan

Balloon Payment Calculator

Understanding balloon options

How to Use

1Enter the vehicle price including GST
2Add any deposit and set loan terms
3Optionally add a balloon payment
4Enter your business use percentage
5Set your company or marginal tax rate

Key Information

You own the vehicle immediately (on finance)
GST credit can be claimed upfront (business portion)
Interest and depreciation are tax deductible
No FBT if logbook shows 100% business use

Pro Tips

Keep a detailed logbook to prove business use percentage
Consider instant asset write-off thresholds for tax deductions
Balloon payments are common to reduce cash flow impact
Compare with novated lease if there's significant private use

Avoid These Mistakes

Claiming 100% business when there's private use (ATO audits this)
Not claiming GST credit when eligible
Forgetting to budget for balloon payment
Not considering FBT for private use component

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026