Hire Purchase Agreement Bank

Potential tax benefits* – In the case of a rental purchase when the asset is used for commercial purposes, you can generally claim interest, operating and depreciation as tax deductions. If you are registered with the GST, you can generally claim some or all of the GST included in the purchase price of the asset and on any frontload fees if you submit your next Business Activity Statement (BAS) rather than over the term of the loan. The GST on maturity royalties can normally be repaid as an upstream tax credit over the term of the loan. The landlord usually has the right to terminate the contract if the tenant is in arrears in paying the measurements or if he violates any of the other conditions of the agreement.