Use GST to Reduce Finance Repayments

It may be possible for your to reduce your Finance Repayments by using the GST you've paid on the vehicle or equipment purchase.

Consider this scenario:

1. You purchase a new vehicle for $50,000 + GST ($5,000)
2. You Finance the entire $55,0000 (purchase price, including GST)
3. You estimate you will receive $5,000 GST refund in the next BAS (the GST you just paid on the vehicle)
4. You structure the Finance to include a $5,000 payment after the BAS refund is due

The $5,000 one-off payments is similar to a deposit, except it is paid after you purchase the vehicle.

Of course, the strategy will depend on a number of significant factors, so you will need to obtain advice from qualified professionals (Taxation and Finance) before implementing this type of strategy.

Contact Us for a Free Financial Assessment, to determine if this strategy will suit you.