FAQs

An operating lease is an asset acquisition funding facility. Operators can purchase vehicles using this facility. Ownership is attained after all payments are finalised.

The ATO treats payments on operating leases as expenses and a tax deduction.

Being registered for GST is not necessary to apply for an operating lease for a heavy vehicle.

Enterprises will have different objectives, accounting methods and approaches to their balance sheet and to treatment of taxation. Operators should discuss all vehicle credit options with their accountant in deciding if an operating lease is the most suitable choice.

When a vehicle is funded with an operating lease, the vehicle remains owned in title by the lender, not the borrowing operation. The buyer does not therefore need to enter the value of the vehicle into their accounts or balance sheet. Thus it is described as an off-balance sheet facility.

Yes. All fuel system vehicles may be purchased using an operating lease. The decision around suitability of the facility primarily rests on the objectives of the buying enterprise.

Buyers can use a funding calculator as provided online by lenders and brokers to compare the full range of credit options. These resources are free to use.

New set-ups may not have all the documentation that lenders require for approval of operating leases. Seeking low doc and no doc operating leases from brokers and expert lenders is an option.

Online calculators are generic computation devices that do not have the functionality to include lender charges or allow for differences in users’ credit profiles. The results obtained are estimates and a quote may be higher.

Operating lease terms are subject to lender approval but up to 7 years is typical.

When the final monthly payment is made on an operating lease, the buyer can opt to pay the buyback amount to take full ownership of the heavy vehicle.