Tax Benefits of Equipment Finance for Australian Electricians

Every dollar you save on tax is a dollar that stays in your business. Understanding tax advantages can literally save you thousands of dollars annually whilst improving your cash flow and business growth prospects.

Last updated: August 202520 min read

Why Finance Beats Cash for Tax Benefits

When you factor in tax benefits and opportunity costs, financing often provides superior financial outcomes. You get immediate tax deductions from interest payments PLUS depreciation claims, while preserving cash for income-generating activities.

Real Numbers Comparison

Cash Purchase ($50,000 Van)

  • • Cash payment: $50,000
  • • Annual depreciation: $8,333
  • • First year tax saving: $2,500
  • Net first year cost: $47,500

Finance Purchase (7 years @ 6.69%)

  • • Cash payment: $0
  • • Interest + depreciation: $11,533
  • • Tax savings: $3,460
  • Net first year cost: $5,480

Result: Finance preserves $45,020 for business operations while costing less in Year 1!

Calculate Your Tax Benefits

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Maximise Your Equipment Finance Tax Benefits

Get professional advice on tax-effective equipment finance strategies. Our team works with accountants and tax professionals to ensure optimal outcomes.