Methodology

How we research rate ranges

When we publish a rate range — for example, "prime 6.5–9.5% p.a., average 9–12% p.a., low‑doc 11–16% p.a." for chattel mortgage — the figures are indicative comparison‑style bands, not lender quotes. They reflect what an applicant with the stated profile (full‑doc, time in business, asset type, term, balloon) could reasonably expect to see when shopping the market on a given date.

To build a range, we draw on:

• Current published rate cards and indicative pricing from Australian asset finance lenders, including the major banks, second‑tier banks and specialist non‑bank lenders that operate in the SME asset finance market.
• Indicative pricing seen through accredited Australian asset finance brokers on our partner panel, who quote against multiple lenders each week.
• Reserve Bank of Australia data on the cash rate and lending indicators (rba.gov.au/statistics).
• Industry data published by the Australian Finance Industry Association (afia.asn.au) and the Equipment Finance Industry Outlook publications.

We avoid quoting any single lender as a market proxy. Where a range is unusually wide, we say so. Where a range is genuinely thin (a specialist asset class with few lenders), we mark it as such and explain why.

How we calculate worked repayment examples

Worked examples on this site use standard amortisation conventions:

• Repayment frequency: monthly in arrears unless stated otherwise.
• Interest method: reducing balance (actuarial), with interest accrued on the outstanding principal each period.
• Balloon / residual: treated as a single lump sum due at the end of the term and excluded from the regular amortising payments.
• Rate: the headline rate is treated as an annual rate; monthly periodic rate is the annual rate divided by 12.
• Fees: excluded from the monthly repayment figure unless the example explicitly states a fee‑inclusive comparison rate.
• GST: excluded from the amount financed in business examples (we assume the amount financed is GST‑exclusive). The GST treatment of the structure is discussed separately.

Where we say a figure is "≈" or "approximately", it has been rounded to make the example readable. Where two pages on this site show slightly different numbers for the same nominal scenario, the more recently reviewed page is the one to rely on.

What our examples are not: a quote, a credit assessment, or an offer. They illustrate how the structure behaves under specific assumptions. Your actual rate, repayment and total cost depend on the lender's assessment of you, the asset, the documentation level and the day's market.

How we describe lender policies

We describe lender policies (term ranges, balloon caps, asset age limits, deposit norms, low‑doc thresholds) as typical patterns observed across the Australian market, not as the policy of any specific lender. Where we say "many lenders cap balloons at 30% for new utes under 5 years", we mean that's the common policy band — individual lenders sit above and below it.

Policy descriptions are refreshed when the broker panel reports a noticeable shift in market settings (for example, several lenders tightening asset age limits at once), or when published lender disclosures change.

How we treat GST, tax and accounting

Our coverage of GST, income tax deductions, depreciation, instant asset write‑off and lease accounting reflects the Australian rules as set by the ATO and the AASB. Key sources:

• ATO — GST guidance for business: ato.gov.au/Business/GST/
• ATO — depreciating assets and capital allowances: ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/
• ATO — instant asset write‑off rules and thresholds (current and historical).
• AASB 16 Leases: AASB 16 (PDF)
• IFRS 16 overview: ifrs.org/issued-standards/list-of-standards/ifrs-16-leases/

Tax and accounting outcomes depend on facts we don't know about the reader — entity type, GST registration status, predominant business use, accounting policies, prior year decisions. Our content explains the general rule and the typical outcome; it does not substitute for advice from a registered tax agent or your accountant.

Update cadence by content type

• Rate ranges, fee bands, balloon norms, repayment examples: reviewed quarterly, and on RBA cash rate change events.
• ATO measures (instant asset write‑off thresholds, temporary measures): reviewed at federal budget announcements and ATO measure updates, and at start of each financial year (1 July).
• Accounting standards (AASB 16 references): reviewed annually and on AASB amendment announcements.
• Legislative references (NCCP, PPSA, Privacy Act): reviewed annually and on relevant amendment announcements.
• Evergreen explainer content (how a chattel mortgage works, etc.): reviewed annually.
• Comparison pages (X vs Y): reviewed annually and whenever the structure of either product materially changes.

The "Last reviewed" date at the top of a page reflects the most recent editorial review, not the original publication date. A page may sit unchanged through a scheduled review when the review confirms the content is still accurate; in that case we update the date and note the next scheduled review.

Limitations

• We don't quote. Nothing on this site is a quote. Real rates and terms depend on a lender's assessment of your specific application.
• We don't see every lender. Our broker panel covers most of the Australian asset finance market but not every product. Some niche or specialist products may not appear in our coverage.
• Markets move. Rate ranges are point‑in‑time. RBA decisions, lender funding cost shifts and policy changes can move ranges between our review cycles.
• Tax and accounting rules change. Instant asset write‑off thresholds, depreciation rules and lease accounting standards have been amended multiple times in recent years. We carry "as at [date]" stamps on time‑sensitive content but readers should verify currency before acting.
• General information only. Our content cannot account for your specific business, tax position or finance history.

Telling us we got something wrong

If you spot a number, rule or claim that looks off, email [email protected] with the URL and the specific statement. We aim to acknowledge within one business day. Our correction process is documented in our Editorial Policy.

Related

Ask about our methodology

Have a question about how we research a rate range, build a worked example, or treat a specific tax rule? Send the question through and we'll walk through it.

Asset Finance Help is an independent information publisher. We don't provide credit assistance or arrange finance ourselves. We make optional introductions to accredited Australian asset finance brokers on our partner panel. See our Disclosures.