Funding Treatments

1. Commercial Loan (CLA)/Chattel Mortgage – There is no impact to CLA facilities as title to the goods is passed to the customer at purchase.

2. Commercial Hire Purchase (CHP) – As the borrower is considered to be the owner for tax depreciation purposes they are entitled to lodge a claim for any IA benefit.

3. Finance Lease – As the owner of the asset the bank currently claims depreciation. The Bill confirms that a financier has the ability to claim the additional Investment Allowance. Where a Finance Lease is requested a benefit will be passed to the customer in the form of a lower interest rate and rentals.

Note: This discount cannot be applied to Luxury Cars over the $57,180 limit or demonstration vehicles as Financiers are unable to claim the benefit.