GST applies to the purchase price of motor vehicles at the current rate of 10%. GST is usually included in the advertised price of a vehicle but additional charges may apply in regard to delivery charges etc. Registration does not attract GST. So when you receive the invoice from the atuomotive seller, the amount of GST payable on the purchase should be noted. Please note a private sale sold vehicle may not have GST.
The total invoice amount, including the GST, can be included in your total loan amount. GST is not charged on loan interest. As your business is taking ownership of the vehicle under a Chattel Mortgage, your business is liable to pay and claim the GST if you are registered for GST. This contrasts with Leasing where the vehicle is technically acquired by the lender and hence they claim the GST.
Under a Chattel Mortgage finance deal, the buyer can actually claim all the GST payable straight away – on the next BAS return. As the full amount of GST has already been claimed and because the lender is not actually charging you when you make repayments, GST does not apply to monthly repayments. So you pay and claim the GST essentially at time of purchase.
Please note the amount total you may claim is subject to luxury car tax thresholds.