Leasing

A simple lease known as a finance lease is widely used for computers, notebooks, servers, telephone systems, projectors, plasmas and other ICT equipment.
It is an attractive finance option for sole proprietors, partnerships and companies that use the 'cash' method of accounting for the Goods and Services Tax (GST). Under the cash method, the equipment is financed excluding the GST component which is claimed back by the eZeHire. This means you are financing the ex GST price, reducing the amount borrowed. GST is payable on you lease payments but that can be claimed back on the your next Business Activity Statement for the term of the finance contract.

During the term of the lease agreement the lessee pays the rental and does not obtain ownership or equity in the equipment. The lessor retains ownership of the equipment, while the lessee assumes the risk of the residual value.

At the end of the leasing period  the lessee has the option of:

• Returning the equipment to the lessor (and make up any shortfall in the residual that may occur).
• Paying out the residual and obtain ownership of the equipment.
• Refinancing the residual for another lease term.

Under a finance lease, the lessee is responsible for all maintenance and running costs of the equipment. Finance
lease rentals are subject to GST, as is the residual value of the equipment.

Flexibility of Leasing

A finance lease allows the lessee to select a lease term and repayments to suit their cash flow. Lease rentals and residual values can be adjusted to allow more flexibility in budgeting.

Tax Benefits of Leasing

Where the equipment is to be used for business purposes, the lease rental will be tax deductible. The extent of the tax deductibility will depend on the business percentage of use, if it is used 100% for business then it is also 100% tax deductible.

For more information or to lodge an enquiry click here info@ezehire.com.au  or Apply on-line or call1300 789403 to speak to one of our consultants