In brief
A loan repayment usually contains principal and interest. The full repayment is not automatically a tax deduction.
What an amortisation schedule shows
An amortisation schedule estimates each repayment across the remaining term. It shows the opening balance, repayment, estimated interest, principal reduction, extra repayments, any balloon or residual and the estimated closing balance.
It is a useful planning and reconciliation aid, but it does not replace the lender's transaction history or annual statement. Lenders may calculate interest daily, round differently, apply fees or change rates.
Why the split matters for records
Principal generally reduces the liability. Interest is a finance cost whose tax treatment depends on the use of the borrowed funds and the surrounding facts. A $900 repayment does not automatically create a $900 deduction.
For vehicles and mixed-purpose lending, ownership, business/private use, GST, depreciation, fringe benefits tax and record keeping may also need to be coordinated.
What to enter
Use the latest lender statement and locate the current balance, annual interest rate, remaining term, repayment frequency, actual repayment, any extra repayment and any balloon or residual. Download the CSV or print the schedule and retain it with the lender statements.
Free browser tool
Generate your current-loan schedule
Your figures stay in the browser. Demeter does not receive them unless you choose to send or bring the schedule to an appointment.
Open the amortisation calculator →Free download
Plan before you spend, finance or claim
Use the small-business tax-planning and vehicle-decision checklist before an asset purchase or finance commitment.
Download the checklist →Bring the records to Demeter
Demeter Accounting can help reconcile the liability, review the accounting treatment and frame the tax questions. Appointments are available in Mundaring, at our private Maida Vale office by appointment, and online Australia-wide. The Maida Vale address is supplied privately after booking.