Finance question
Can I claim the instant asset write-off on financed equipment?
Usually yes. Financing the equipment does not, by itself, stop you claiming the instant asset write-off, because the write-off is about owning and using the asset in the business, not about how you paid for it. What matters is the eligibility rules and thresholds that apply at the time, which change, so confirm your position with your accountant. Ventas is a finance broker, not a tax adviser.
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The short answer
It is about owning the asset, not how you paid
A common worry is that borrowing to buy equipment cancels the instant asset write-off. Generally it does not. The write-off looks at whether the asset is owned and used in the business, not at whether you paid cash or financed it. With a structure like a chattel mortgage, where you own the asset from settlement, that ownership is exactly what the write-off is concerned with.
The catch is not the finance, it is the rules. The instant asset write-off has eligibility conditions and cost thresholds that change over time, and they decide whether a particular asset qualifies in a given year. Because those figures move, we do not quote them here. Your accountant will know what applies for your business and the year you are claiming in.
This is where getting the finance structure right pays off twice. We set the deal up so you own the asset in the way that supports your claim, then your accountant confirms the write-off against the current rules. The finance can even help cash flow, since you keep working capital while still owning the asset the write-off applies to. We arrange the finance; the tax call is theirs.
What the claim depends on
The pieces that decide eligibility.
Ownership
You own the asset, which is what the write-off looks at.
Business use
The asset is used to run the business.
Current thresholds
Eligibility and cost limits that apply in the year you claim.
Your accountant
They confirm the claim against the current rules.
Why financing does not block the write-off
Ownership is the test
The write-off looks at owning and using the asset, not the payment method.
You own from settlement
A chattel mortgage puts the asset in your name straight away.
Cash flow stays intact
Finance lets you keep working capital while still owning the asset.
A real example
A builder finances a $40,000 machine on a chattel mortgage, so he owns it from settlement while spreading the cost. His accountant checks it against the write-off rules for that year and applies the claim, since the finance did not change ownership. He kept his cash and still owned the asset. Illustrative only.
Common questions
Frequently asked questions
Does financing the asset cancel the write-off?
Generally no. The write-off is about owning and using the asset in the business, not how you paid for it. Financing by itself does not block the claim.
Do I own the asset if I finance it?
Under a chattel mortgage, yes, you own it from settlement with the lender holding a mortgage until you pay it out. That ownership is what the write-off looks at.
What are the current thresholds?
They change over time, so we do not quote them here. Your accountant will confirm the eligibility and cost limits that apply for the year you are claiming.
Can Ventas confirm my claim?
No. We are a finance broker, not a tax adviser. We arrange the finance and structure ownership; your accountant confirms the write-off.