A Lease is a rental agreement in which the Bank/Financier owns the equipment, and you indemnify the Lender/Financier for the agreed residual value at the end of the lease term.
It is important to note that there is no option for you to purchase the equipment during or at the end of the agreement. Most Lenders/Financiers will, however, consider an offer from you to purchase the equipment for the residual value at the end of the term.
A deposit cannot be made to a finance lease. Rental payments are fully tax deductible provided the vehicle/equipment is used to generate assessable income.
Payments are subject to GST including the residual due.
Note:
(We do not purport to provide taxation or legal advice and strongly recommend that you consult your financial or taxation advisor for specific advice).
