Leasing is a commercial finance facility and all business loan products have a tax-deductible benefit. With leasing, ownership of the asset is held by the lender and the borrower leases the asset from the lender. The lease payment is considered an operating expense and under ATO rulings is tax deductible. (Subject to individual circumstances and eligibility) The interest portion of the lease payment is a tax deduction. GST is applied to the monthly lease repayments and can be claimed by the borrower if registered for GST. Residual payments are subject to ATO rulings.