There are many benefits to leasing equipment instead of purchasing it outright for any business or company. Equipment leasing can free up a business’ cash flow and provide an easy path to expanding and upgrading equipment. It also reduces risks of ownership for businesses and end-of-term asset disposal risks. By structuring repayments for lease equipment, you can take advantage of potential tax benefits for your business as well.

Equipment leasing is a specialist legal area. An equipment lease is a security interest that, in most circumstances, should be registered with the federal government’s Personal Property Securities Interest (PPSR). Our team of business and leasing lawyers can assist you with ensuring the correct legal documents are filed to ensure your tax liabilities are minimised and your obligations with the leasing company are correct.

Equipment Leasing Benefits

There are long-term budgeting, tax and technological benefits to leasing equipment. Moreover, businesses lease equipment to reduce company debt, manage the costs of equipment maintenance and ensure efficient use of capital. Generally, monthly payments can be lower compared to a traditional loan used to buy equipment and assets, which results in a lower impact on a business’ cash-flow.

Lease payments can provide more certainty, as they are fixed and predictable. Fixed repayments allow for better budgeting and avoidance of rate fluctuations over the term of the lease. Businesses also prefer equipment leasing, as lease payments may be tax deductible. Provided the asset is used to generate assessable income for the business, lease payments may be partly or fully tax deductible. Finally, the option to upgrade equipment can often be a financial burden for a business. With equipment leasing, businesses can avoid technology obsolescence.

How to lease equipment

Equipment leasing is treated as a loan, whereby the lender buys and owns equipment and then leases it to a business at a flat monthly rate for a number of specified months. At the end of the lease period, the business may choose to purchase the equipment at its fair market value, continue leasing or return the leased equipment. Our business loan lawyers can assist you in drafting the right contract to lease equipment.


Equipment leasing will depend on the leasing and finance company or financial institution your business contracts with. Equipment finance products include a finance lease, commercial loan and commercial hire purchase options. At LegalVision, we have significant experience in assisting businesses in various industries lease their equipment. Contact us today on 1300 544 755 to find out more about equipment leasing for your business.

COVID-19 Business Survey
LegalVision is conducting a survey on the impact of COVID-19 for businesses across Australia. The survey takes 2 minutes to complete and all responses are anonymous. We would appreciate your input. Take the survey now.

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. For just $199 per month, membership unlocks unlimited lawyer consultations, faster turnaround times, free legal templates and members-only discounts.

Learn more about LVConnect

Lachlan McKnight
Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. See our full Privacy Policy.
  • This field is for validation purposes and should be left unchanged.
Our Awards
  • 2019 Top 25 Startups - LinkedIn 2019 Top 25 Startups - LinkedIn
  • 2019 NewLaw Firm of the Year - Australian Law Awards 2019 NewLaw Firm of the Year - Australian Law Awards
  • 2020 Fastest Growing Law Firm - Financial Times APAC 500 2020 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2020 Law Firm of the Year Finalist - Australasian Law Awards 2020 Law Firm of the Year Finalist - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer
Privacy Policy Snapshot

We collect and store information about you. Let us explain why we do this.

What information do you collect?

We collect a range of data about you, including your contact details, legal issues and data on how you use our website.

How do you collect information?

We collect information over the phone, by email and through our website.

What do you do with this information?

We store and use your information to deliver you better legal services. This mostly involves communicating with you, marketing to you and occasionally sharing your information with our partners.

How do I contact you?

You can always see what data you’ve stored with us.

Questions, comments or complaints? Reach out on 1300 544 755 or email us at

View Privacy Policy