Reading time: 3 minutes

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.


Corporate Governance 101: Responsibilities for New Directors

Friday 13 May | 11:00 - 11:45am

If you are a new company director, join our free webinar to understand your legal compliance obligations. Register today.
Register Now

How Franchisors Can Avoid Misleading and Deceptive Conduct

Wednesday 18 May | 11:00 - 11:45am

Ensure your franchise is not accused of misleading and deceptive conduct. Register for our free webinar today.
Register Now

New Kid on the Blockchain: Understanding the Proposed Laws for Crypto, NFT and Blockchain Projects

Wednesday 25 May | 10:00 - 10:45am

If you operate in the crypto space, ensure you understand the Federal Government’s proposed licensing and regulation changes. Register today for our free webinar.
Register Now

How to Expand Your Business Into a Franchise

Thursday 26 May | 11:00 - 11:45am

Drive rapid growth in your business by turning it into a franchise. To learn how, join our free webinar. Register today.
Register Now

Day in Court: What Happens When Your Business Goes to Court

Thursday 2 June | 11:00 - 11:45am

If your business is going to court, then you need to understand the process. Our free webinar will explain.
Register Now

How to Manage a Construction Dispute

Thursday 9 June | 11:00 - 11:45am

Protect your construction firm from disputes. To understand how, join our free webinar.
Register Now

Startup Financing: Venture Debt 101

Thursday 23 June | 11:00 - 11:45am

Learn how venture debt can help take your startup to the next level. Register for our free webinar today.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Winner – Australasian Lawyer
  • 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year - Australasian Law Awards
  • 2019 Most Innovative Firm - Australasian Lawyer