| Leasing
Lease finance is used to acquire a wide range of assets which are used for business purposes.
Leasing Information
These assets are generally classified into the following categories. By clicking on the appropriate item you will receive information on acceptable residuals and be able to obtain indicative finance quotations.
Motor Vehicles
Trucks & Buses
Plant, Equipment & Computers
Different interest rate structures apply to each category.
Quotation Calculator
Depreciation Rates
Contact Us for More Information
Motor Vehicle Finance Quotes for Standard & Novated Leases
To obtain a quotation, input the selected term and residual from the following chart
Standard Terms |
12 Months |
24 Months |
36 Months |
48 Months |
60 Months |
| Standard Residuals |
60% |
50%-60% |
45%-50% |
35%-45% |
25%-35% |
Quotation Calculator
Back to Top
Trucks & Buses
To obtain a quotation, input the selected term and residual from the following chart
Standard Terms |
24 Months |
36 Months |
48 Months |
60 Months |
Standard Residuals |
45%-60% |
35%-40% |
25%-37.5% |
25%-30% |
The quotes provided are for vehicles new and up to four (4) years old
To obtain the correct total monthly rental, the stamp duty amount relative to the applicable State must be calculated and added to the base rental amount. GST should then be added at 10% of the gross amount to provide the full monthly rental. Please note that companies with an ABN can claim the GST as an input tax credit. Individuals can claim the business use percentage of the GST as a deduction against their taxable income.
Quotation Calculator
Back to Top
Plant, Equipment & Computers
Plant & Equipment (Average Acceptable Residual Values)
Acceptable residuals are determined by the rate of depreciation of the asset being financed. Depreciation rates and the acceptable residual values can be found here.
Standard Terms |
24 Months |
36 Months |
48 Months |
60 Months |
Standard Residuals |
50%-60% |
35%-45% |
20%-30% |
10%-25% |
Computers
Standard Terms |
24 Months |
36 Months |
48 Months |
Standard Residuals |
20%-30% |
10%-20% |
5%-10% |
Input the amount to be financed. The applicable interest rate will appear and the monthly repayment will be calculated. The quotes provided are for new computer systems and for plant and equipment which is new or up to three years old and for amounts in excess of $18,000.
You can check the depreciation rate for your particular asset being financed and adjust the residual value accordingly in the calculation box below.
Quotation Calculator
Back to Top
Motor Vehicles Quotation Calculator
Input the amount to be financed, the required term and the residual amount. The current interest rate will appear which is an estimate of the rates available through Robert Mayor & Associates Pty Ltd. Final pricing is subject to the lenders criteria and assessment of each proposal.
The monthly repayment will be automatically calculated. If you wish, you can override the automatic interest rate by inputting your own figure which will adjust the repayment accordingly. You may also adjust the residual amount based on the rate of depreciation of the asset being financed.
Please use the tab key to input the quote figures.
In order for the calculator below to function correctly, you should be using either Netscape Navigator version 2.02 or higher, or Microsoft Internet Explorer version 3 or higher.
To operate the following quotation calculator enter the term in months, the amount financed and the residual amount into the calculator function box below using the tab key to advance to the next input field. Once all of the input fields are filled, to generate the final monthly repayment figure, press inside the monthly repayment field with your cursor.
Note: Amounts to be financed less than $10,000 are not available.
Note: Monthly repayments are calculated monthly in advance and do not include relevant State Stamp Duties, Financial Institutions Duties or GST. Note that GST is always charged on lease rentals.
Note: To be paid in cash - document fee $375 plus $11 REVS.
To obtain the correct total monthly rental, the stamp duty amount relative to the applicable State must be calculated and added to the base rental amount. GST should then be added at 10% of the gross amount to provide the full monthly rental. Please note that companies with an ABN can claim the GST as an input tax credit. Individuals can claim the business use percentage of the GST as a deduction against their taxable income.
Back to Top
Leasing Information
What is Leasing Finance?
What type of goods can be leased?
Who owns the goods being leased?
Do I ever get to own the goods?
How is the residual value determined?
How long can a lease be taken over?
What is the tax treatment of leases?
What happens at the end of a lease term?
What is an Operating Lease?
What is a Novated Lease?
GST Implications with Leasing
Back to Top
What is Leasing Finance?
Leasing is a very popular form of finance used by business to acquire assets. It allows a business to obtain the benefit of using an asset without purchasing it. The company leases the asset and pays a monthly lease rental for its use.
Back to Leasing Information
Back to Top
What type of goods can be leased?
Motor vehicles, trucks, buses, plant & equipment and computers are examples of goods that are frequently leased. The list can be expanded to include aircraft, boats and virtually any asset that can be acquired by a business to generate income.
Back to Leasing Information
Back to Top
Who owns the goods being leased?
The financier of the goods owns the goods. There is no ownership or implied ownership by the borrower (lessee).
Back to Leasing Information
Back to Top
Do I ever get to own the goods?
At the end of the lease term a residual value will remain on the lease. You can make an offer to the lender to purchase the goods for an amount equal to the residual value which is accepted in nearly all cases.
Back to Leasing Information
Back to Top
How is the residual value determined?
The residual value is an amount which should reflect the value of the item at the end of the lease term. It is determined by using the applicable rate of depreciation to the asset over the term of the lease. For example, a motor vehicle has a 18.75% depreciation rate. If a $10000 motor vehicle were leased over a four year term and a 18.75% annual depreciation rate were applied, then the residual (written down value) of the vehicle would be $4358 or 43.6%. An acceptable residual value therefore for a motor vehicle lease over a four year term would be between 35% and 45%.
Back to Leasing Information
Back to Top
How long can a lease be taken over?
Terms for finance leases are usually between 12 and 60 months.
Back to Leasing Information
Back to Top
What is the tax treatment of leases?
All of the lease rentals on a finance and operating lease are deductible against the taxable income of a business. Lessees are permitted under current tax laws to make the equivalent of 13 monthly lease rentals in any one financial year. However, in some circumstances, at the commencement of a lease agreement, large first lease rentals of up to 20% of the purchase price are permitted.
Back to Leasing Information
Back to Top
What happens at the end of a lease term?
With finance leases, the lessees (borrowers) options are:
1) To make an offer to the lessor (lender) to purchase the goods for an amount equal to the residual value.
2) The Lessee can hand the goods back to the lessor who will then sell the goods at a public sale. If the goods are sold for less than the residual then the lessee is liable to make up the shortfall.
3) The lessor may offer the lessee an extended period to repay the residual. i.e. a new lease agreement or a Commercial Hire Purchase agreement.
4) To trade the goods in on new equipment. In this case, the supplier of the goods pays out the residual owing under the lease agreement. This payout is made from the allowance made on the traded goods. If a shortfall exists, between the trade-in allowance and the payout figure, then this amount must be paid by the lessee.
Back to Leasing Information
Back to Top
What is an Operating Lease?
Operating leases include covering the cost of running and maintaining the asset during the term of the agreement. With motor vehicles for example, included in the lease rentals is the cost of vehicle servicing and insurance, and in all cases the vehicles are handed back at the end of the rental period and can be replaced with a new model. Operating lease rentals are naturally more expensive than finance leases for this reason.
Back to Leasing Information
Back to Top
What is a Novated Lease?
Novated leases are usually part of the salary packaging of an employee, which allows the employee to acquire and use a motor vehicle with the lease rentals being paid by the employer as part of the salary packaging arrangements. The employer agrees to make the repayments on the lease agreement. The arrangement is terminated in the event of the employee ceasing their employment. The responsibility of the contract then returns to the individual.
There have been recent changes to tax laws with respect to novated leasing and advice should be sought from an accountant experienced in these types of arrangements prior to executing a novated lease.
Back to Leasing Information
Back to Top
GST Implications with Leasing
There are two main issues here. With leasing, the owner of the goods is the lender (Lessor). The GST liability on the purchase of the goods is therefore with the Lessor who pays the GST and claims it back as an input taxed credit. Only the net amount (i.e. the purchase price, less the GST), is financed. The GST liability for the Lessee (borrower/user) is on the monthly lease rentals where an additional 10% is levied. Lessees registered for GST can claim this amount back as an input taxed credit.
There are many GST issues with private sales, individuals not registered for GST, car allowances and so on. For non standard GST transactions you should contact your accountant for advice on the relevant tax treatment.
Back to Leasing Information
Back to Top
Depreciation Rates
Revised (Safe Harbour) Depreciation (Diminishing Value) Rates
As at 30 June 2002
Automotive
Earthmoving Equipment
Farm Machinery & Equipment
Forestry & Logging
Medical Plant & Equipment
General Plant & Equipment
| Automotive |
Effective Life Years |
Depreciation Rate |
| Motor Vehicles - cars |
8.00 |
18.75 |
| Motor Vehicles - travellers/reps |
5.00 |
30.00 |
| Motor cycles |
8.00 |
18.75 |
| Utility/light truck under one tonne |
8.00 |
18.75 |
| Utility/truck over one tonne |
6.66 |
22.50 |
| Trucks/heavy haulage prime movers, etc |
5.00 |
30.00 |
| Buses (more than nine passengers) |
6.66 |
22.50 |
| Buses (long distance coaches) |
5.00 |
30.00 |
| Trailers/semi and B. double trailers |
10.00 |
15.00 |
| Forklifts (general) |
11.00 |
13.60 |
| Forklifts (container handling) |
7.50 |
20.00 |
Back to Depreciation Rates
Back to Top |
|
|
| Earthmoving Equipment |
Effective Life Years |
Depreciation Rate |
| Skid steel loaders (bob cats) |
7.00 |
21.40 |
| Bull dozers/track loaders |
9.00 |
16.60 |
| Mini excavators |
8.00 |
18.75 |
| Hydraulic excavators & motor graders |
10.00 |
15.00 |
| Front end loaders/back hoe |
9.00 |
16.60 |
| Scrapers |
8.00 |
18.75 |
| Wheel loaders |
8.00 |
18.75 |
| Compactors |
12.00 |
12.50 |
Back to Depreciation Rates
Back to Top |
|
|
| Farm Machinery & Equipment |
Effective Life Years |
Depreciation Rate |
| Tractors |
6.66 |
22.50 |
| Farm Machinery (general implements & plant) |
10.00 |
15.00 |
| Headers/harvesters |
6.66 |
22.50 |
Back to Depreciation Rates
Back to Top |
|
|
| Forestry & Logging |
Effective Life Years |
Depreciation Rate |
| Forwarders |
8.00 |
18.75 |
| Harvesters & feller bunchors |
7.00 |
21.40 |
| Log trailers |
10.00 |
15.00 |
| Bulldozers & excavators |
7.00 |
21.40 |
Back to Depreciation Rates
Back to Top |
|
|
| Medical Plant & Equipment |
Effective Life Years |
Depreciation Rate |
| CT scanners |
10.00 |
15.00 |
| Nuclear medicine equipment |
10.00 |
15.00 |
| Ophthalmic surgeons plant |
10.00 |
15.00 |
| Ultra sound units |
5.00 |
30.00 |
| X-ray plant |
15.00 |
10.00 |
| X-ray plant (mobile) |
10.00 |
15.00 |
Back to Depreciation Rates
Back to Top |
|
|
| General Plant & Equipment |
Effective Life Years |
Depreciation Rate |
| Air conditioning - rooms units |
10.00 |
15.00 |
| Air conditioning - ducted systems |
13.33 |
11.25 |
| Aircraft & helicopters |
20.00 |
7.50 |
| Aircraft & helicopters (used for crop dusting & spraying) |
20.00 |
7.50 |
| Alarm systems |
20.00 |
7.50 |
| Artworks (painting, sculptures, etc) |
100.00 |
1.50 |
| Boats (motor & sailing) |
13.33 |
11.25 |
| Cabins (used in caravan parks) |
20.00 |
7.50 |
| Carpets (in business places, hotels etc) |
5.00 |
30.00 |
| Cash registers |
6.66 |
22.50 |
| Compressors |
20.00 |
7.50 |
| Compressors - mobile |
12.00 |
12.50 |
| Computerised type setting equipment etc |
5.00 |
30.00 |
| Computers - desktop PC |
4.00 |
37.50 |
| Computers - Laptop |
3.00 |
50.00 |
| Contract cleaners plant (polishing machines, vacuum cleaners, sweepers etc) |
10.00 |
15.00 |
| Cool rooms (refrigeration units) |
13.33 |
11.25 |
| Drilling rigs (mining/gas exploration) |
10.00 |
15.00 |
| Engineering/metal working plant |
20.00 |
7.50 |
| Furniture & fittings |
13.33 |
11.25 |
| Generators |
20.00 |
7.50 |
| Laundry equipment - general plant |
10.00 |
15.00 |
| Laundry Equipment - washing machines |
6.66 |
22.50 |
| Lawn mowers (motor) |
6.66 |
22.50 |
| Metal working lathes/milling machines (cnc) |
10.00 |
15.00 |
| Mini lab/photo lab |
10.00 |
15.00 |
| Mobile concrete pumping units |
6.66 |
22.50 |
| Mobile cranes up to 15.24 tonne lift |
15.00 |
10.00 |
| Mobile cranes over 15.24 tonne lift |
20.00 |
7.50 |
| Photocopiers & fax machines |
5.00 |
30.00 |
| Photographers - camera |
4.00 |
37.50 |
| Photographers - lenses, flash units, enlargers etc |
10.00 |
15.00 |
| Plastic blow moulding & injection moulding machines |
13.33 |
11.25 |
| Poker machines (club & hotels) |
5.00 |
30.00 |
| Portable building, sheds & offices |
10.00 |
15.00 |
| Printing presses & guillotines etc |
10.00 |
15.00 |
| Quarrying & crushing plant/machinery |
10.00 |
15.00 |
| Refrigeration units - general |
13.33 |
11.25 |
| Refrigeration units - freezing |
10.00 |
15.00 |
| Scissor lifts/boom lifts |
6.00 |
25.00 |
| Sewing machines & embroidery machines |
10.00 |
15.00 |
| Sound recording equipment |
6.66 |
22.50 |
| Spray booth |
6.66 |
22.50 |
| Taxis |
4.00 |
37.50 |
| Telephone systems/pabx |
20.00 |
7.50 |
| Welding equipment |
20.00 |
7.50 |
| Woodworking plant |
13.33 |
11.25 |
Back to Depreciation Rates
Back to Top
Contact Us for More Information
If you would like to find out more information about anything covered on this page, please contact us and we will assist you with your enquiry. Thank you.
Yes, I would be interested in receiving additional information.
|
