Equipment & Machinery Finance Calculator 2026-27
Chattel mortgage, finance lease or rental on the same machine. Repayments, the residual, and when the GST actually comes back.
Monthly
$2,014
GST On Next BAS
$8,000
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No account required • No car limit on plant • Built for ABN holders
Invoice price including GST, delivery and install.
Cash down plus any machine you are trading in.
The rate on your own quote or contract.
Most plant is 100%. Private use is not deductible.
Switch between them to see how the numbers move. AusCalc does not recommend a structure. Which one suits your business is a question for your accountant.
Equipment terms usually run shorter than vehicle terms, often matched to the working life of the machine.
Percentage of the amount financed still owing as a lump sum at the end. Plenty of equipment deals are written at zero.
Chattel mortgage
You own the asset from day one, so the credit on the purchase price is generally claimable in one hit on the BAS covering the purchase.
Next step
Buying it for real? Get it quoted.
A licensed asset finance broker we work with can quote finance on it. Pick what you are financing to start.
Free and no obligation. Nothing is applied for. AusCalc is a referrer, not a lender or broker, and may be paid a fee if you go ahead.
No Car Limit Here
Plant and machinery are not cars, so nothing caps your GST credit or the cost you depreciate, however expensive the machine is. Financing a ute or a dual cab instead? That one is capped.
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Equipment Finance Analysis Report
Chattel mortgage on a $88,000.00 machine over 4 years at 8.5% with a 10% residual.
Scenario Parameters
Financial Analysis
This document provides calculated estimates based on public Australian Taxation Office (ATO) guidelines and typical business parameters for the 2024-2026 financial years. AusCalc provides these models for strategic planning purposes only. These figures do not constitute personal financial, legal, or professional tax advice. Actual results depend on individual tax structure, deductions, and legislation changes. We mandate that you verify these projections with a Register Tax Agent or Financial Advisor before executing business strategies.
The Same Machine, Three Ways
Your figures run through all three structures. The finance cost barely moves. What moves is when the GST comes back and what you actually deduct.
| Chattel mortgage | Finance lease | Rental or operating lease | |
|---|---|---|---|
| Monthly payment | $2,014.48 | $2,014.48 | $2,169.05 |
| Residual at the end | $8,800.00 | $8,800.00 | $0.00 |
| Total paid | $105,494.99 | $105,494.99 | $104,114.43 |
| GST back on the next BAS | $8,000.00 | $0.00 | $0.00 |
| GST back per payment | $0.00 | $183.13 | $197.19 |
| First year deduction | $6,814.04 | $21,976.13 | $23,662.37 |
| What that deduction is | Interest charged in the first 12 months. Depreciation is claimed separately. | The lease payments themselves, net of the GST you claim back. | The rental payments themselves, net of the GST you claim back. |
Estimates only, on the numbers you entered. AusCalc is not a credit provider and does not recommend a structure or a lender. Confirm the treatment with your accountant before you sign anything.
Invoice the job with GST and the tax to set aside worked out.
Regulatory Notice:
Standard ATO estimates only; consult a professional before acting. For more details, see our Disclaimer.
Explore Related Calculators
Financing Plant, Machinery and Equipment in Australia (2026-27)
Why Equipment Finance Is Not Just Car Finance With A Different Word
Most calculators treat every business asset the same way. They should not. Two things genuinely differ once you are financing a machine rather than a car. First, the ATO car limit does not exist here, so nothing caps your GST credit or the cost you depreciate no matter what the machine cost. Second, the structure you sign changes when your GST comes back, and on a large machine that timing is worth thousands in working capital.
Everything else follows from those two facts. Equipment deals tend to run on shorter terms matched to the working life of the asset, and with smaller residuals or none at all, which is the opposite of how vehicle finance is usually written.
The GST Timing Difference, Worked
Take an $88,000 excavator including GST, no deposit, financed over 4 years at 8.50% with a 10% residual, used 100% for business by a GST registered sole trader. The monthly payment comes out at $2,014.48 either way. That is not where the structures differ.
$88,000 ÷ 11
$8,000 on the next BAS
$2,014.48 ÷ 11 = $183.13 per payment
$2,197.56 across the first year
$8,000 - $2,197.56
$5,802.44 of working capital
$8,000 ÷ $183.13
About 44 monthly payments
So the same machine at the same rate leaves roughly $5,800 more in your account through the first year under a chattel mortgage, and the lease does not catch up until nearly four years in. If your business is tight on working capital that is a big number. If you would rather keep the asset off your balance sheet, or you are not registered for GST so no credit exists either way, it may not matter at all.
One honest wrinkle. Across the whole term a lease actually returns more GST in raw dollars, because you pay GST on the finance charges too and claim one eleventh of that as well. That is not free money. You paid it first. The point of the comparison is timing, not total.
No Car Limit On Plant And Machinery
The ATO car limit caps both the cost you can depreciate and the GST credit you can claim, and it catches a lot of tradies out on a dual cab. It does not apply here. The limit is written for passenger vehicles designed to carry fewer than nine people and a load under one tonne. An excavator, a tipper, a trailer, a commercial oven, a CNC machine, a scissor lift or a set of trade tools is simply not a car.
That means a $150,000 machine gives a GST registered business the full one eleventh credit on the business use portion, with no cap in sight, and the full cost goes into depreciation. The same money spent on a high spec dual cab would be capped on both.
If the asset you are pricing is a ute, a van or a car, use the vehicle finance calculator instead, since it applies the car limit and models the balloon that vehicle deals are usually written with.
Instant Asset Write-Off: Check The Status Before You Commit
This one is genuinely worth checking before you pick a purchase date. The ATO’s instant asset write-off limits table currently lists $20,000 for assets first used or installed ready for use on or after 1 July 2023, with no end date. The permanent extension from 1 July 2026 was carried in the Treasury Laws Amendment (Tax Reform No. 2) Bill 2026, which passed the Senate on 19 August 2026.
It is still worth confirming before you commit. This threshold has moved more than once, and without the concession the figure in the underlying law is only $1,000 — a very different world, in which an asset you assumed you would write off immediately instead goes into the small business pool and depreciates over several years. Check the ATO instant asset write-off page or ask your accountant before you time a purchase around it.
Two things worth knowing either way. The threshold is tested against the whole cost of the asset, not just the business use slice, so a part business machine is not brought under the limit by apportionment. And if you are registered for GST the cost you test is the GST exclusive figure, because you claim the GST back separately. On the numbers you have entered that GST exclusive cost is $80,000.00.
Always confirm the current position on the ATO instant asset write-off page or with your accountant before you commit. This is exactly the kind of measure that changes without much noise.
Residual Values: The Table Everyone Quotes Is About Cars
Ask about residuals and someone will quote you the ATO minimum residual percentages from IT 28. Those figures are real, but they are written for motor vehicles, and a lot of people assume they govern machinery leases as well. They do not.
- 12 months lease term65.63% of cost
- 24 months lease term56.25% of cost
- 36 months lease term46.88% of cost
- 48 months lease term37.50% of cost
- 60 months lease term28.13% of cost
On plant and equipment the residual is generally set commercially, at whatever the financier believes the machine will realistically be worth when the term ends. A machine that gets worked hard and dates quickly carries a small residual or none at all. That is why equipment finance so often runs shorter and flatter than vehicle finance. Put your own quoted residual into the slider rather than a rule of thumb from a vehicle table.
Who Should Use This Calculator
Sole traders and small business owners pricing an excavator, a tipper, a trailer, a mill, a commercial kitchen fit out, medical or salon equipment, a scissor lift or a serious set of trade tools. It is built for the ABN holder who has a quote in front of them and wants to know the real monthly number, what is owing at the end, when the GST actually lands and what they can deduct in the first year, before they sign.
Frequently Asked Questions (FAQ)
Chattel mortgage, finance lease or rental. What actually differs?
Under a chattel mortgage you own the equipment from day one and the financier takes security over it, so a GST registered buyer generally claims the GST credit on the purchase price in one hit. Under a finance lease the financier owns the asset, you pay to use it, and there is a residual to deal with at the end. A rental or operating lease works the same way but without a residual you have committed to, so the payment is higher. Which one fits depends on your GST registration, your accounting method and your cash flow. That is a conversation for your accountant, not a calculator.
When do I actually get the GST back on equipment finance?
It depends entirely on the structure. Under a chattel mortgage you generally claim one eleventh of the purchase price on the BAS covering the purchase, which puts a lump of cash back within weeks. Under a lease or rental there is no credit on the price at all. You claim one eleventh of each payment instead, so the same money trickles back across the term. On a large machine that timing is the single biggest cash flow consequence of the structure you sign.
Does the ATO car limit apply to equipment and machinery?
No. The car limit only applies to passenger vehicles designed to carry fewer than nine people and a load under one tonne. An excavator, a trailer, a commercial oven, a CNC machine or a set of trade tools is not a car, so neither the depreciation cap nor the capped GST credit applies. The full GST credit on the business use portion is available no matter what the machine cost. This is the main reason equipment finance and car finance are not the same calculation.
Can I use the instant asset write-off on equipment right now?
The ATO's instant asset write-off limits table currently lists $20,000 for assets first used or installed ready for use on or after 1 July 2023, with no end date. The permanent extension from 1 July 2026 was carried in the Treasury Laws Amendment (Tax Reform No. 2) Bill 2026, which passed the Senate on 19 August 2026. This threshold has moved more than once, and without the concession the figure in the underlying law is only $1,000, so confirm the current position on the ATO instant asset write-off page or with your accountant before you commit to a purchase date.
What residual should I set on an equipment lease?
The ATO minimum residual table in IT 28 that people quote is written for motor vehicles, not for plant and equipment. On a machinery lease the financier generally sets the residual at what it believes the asset will realistically be worth at the end of the term, which is why equipment deals often run on shorter terms with a small or zero residual while a vehicle lease carries a large one. Set the slider to what your actual quote says rather than to a rule of thumb.
Is the interest on equipment finance tax deductible?
Under a chattel mortgage the business use portion of the interest is generally deductible, and you claim depreciation on the asset separately. Under a lease or rental you generally deduct the payments themselves, net of any GST you claim back, rather than interest and depreciation. That is why the first year deduction figures here differ so much between the structures even though the finance cost is similar. Private use is never deductible.