Complete Guide to Equipment Finance in Australia (2026)

Equipment finance covers a broad range of business assets — from forklifts, CNC machines and generators to vehicle hoists, spray booths, commercial fridges and medical devices. Unlike machinery finance (which focuses on heavy plant), equipment finance typically covers smaller, more diverse commercial assets. This guide explains every finance structure available, how they differ, and what to consider when choosing the right one for your business.

What Is Equipment Finance?

Equipment finance is a form of asset-backed lending that allows businesses to acquire equipment without paying the full cost upfront. A lender funds the purchase and you repay over an agreed term. The equipment itself usually serves as security. Finance is available for new and used equipment from dealers, private sellers and auctions — across all industries and asset categories.

Equipment Loans Versus Leases

The core distinction in equipment finance is between loans (where your business owns the asset from day one) and leases (where the lender owns the asset and you pay to use it). Loans typically offer better tax benefits if your business can use depreciation and GST credits. Leases offer lower upfront payments and flexibility at end of term. The right choice depends on your tax position and whether ownership matters to your business.

Chattel Mortgage

A chattel mortgage is the most common equipment finance structure for GST-registered businesses. You own the equipment from day one — the lender registers a charge over the asset as security. Key benefits: you can claim the full GST input tax credit on the purchase price in the quarter of purchase; interest payments are tax-deductible; and you can depreciate the asset under the relevant ATO schedules (or claim the instant asset write-off if eligible). The charge is removed when the loan is repaid.

Finance Lease

Under a finance lease, the lender purchases the equipment and leases it to your business over an agreed term. You make regular lease payments (which are fully tax-deductible as a business expense) and do not own the asset during the term. At the end of the lease, you can purchase the equipment for the residual value, extend the lease or return it. Finance leases are popular for businesses that want lower monthly payments or prefer to keep assets off-balance-sheet.

Commercial Hire Purchase

A commercial hire purchase (CHP) works similarly to a chattel mortgage — the lender purchases the equipment and 'hires' it to your business, with ownership transferring at the final payment rather than from day one. The tax treatment is similar to a chattel mortgage. CHP is less commonly used today but remains an option for certain business structures and tax situations.

Operating Lease

An operating lease is an off-balance-sheet rental arrangement where you pay to use equipment without ownership ever transferring. Payments are fully deductible. At the end of the term, the lender retains the equipment. Operating leases suit businesses that need equipment for a defined project or period, or that prefer to upgrade frequently without the residual value risk.

Current Equipment Finance Rates

Equipment finance rates in Australia currently range from around 6.29% to 15%+ per annum. New equipment from established businesses with clean credit attracts the sharpest rates. Used, specialist or older equipment and new ABNs carry higher rates. We compare 80+ lenders to find the most competitive rate for your specific equipment and business profile.

Low Doc Versus Full Doc Applications

Low doc equipment finance is available up to $500k with just your ABN and driver's licence — no bank statements, no tax returns, BAS or financial accounts required. For loans over $500k, most lenders require full financial documentation. We'll tell you upfront what's needed for your specific loan amount and lender, so there are no surprises.

Deposits and 100% Funding

Zero-deposit equipment finance is available for eligible businesses with at least two years of GST registration. A deposit reduces your monthly repayments and can help you access a lower rate. For very large or specialist assets, lenders may require a deposit to reduce their risk exposure.

New and Used Equipment

We finance new, ex-demo and used equipment with no blanket age restrictions. Each asset is assessed individually. Very old or specialist equipment may require a larger deposit or carry a higher rate. Purchases from dealers, private sellers and auctions are all supported.

Tax, GST and Depreciation Considerations

Under a chattel mortgage, GST-registered businesses can claim the full GST input tax credit (10% of the purchase price) in the BAS quarter of purchase. Depreciation is claimable at the relevant ATO rate for the asset category. The instant asset write-off may allow you to write off the full cost in the year of purchase, subject to ATO thresholds and your business eligibility — always confirm with your accountant.

Loan Terms and Balloons

Equipment finance terms typically range from 12 to 84 months. A balloon payment defers a lump sum to the end of the term to reduce monthly repayments during the loan period. We structure the balloon to align with the asset's expected resale value and your replacement cycle.

Equipment Categories We Finance

• Forklifts (counterbalance, reach truck, order picker, walkie stacker)
• CNC machines, laser cutters, press brakes and metalworking equipment
• Generators and power equipment
• Vehicle hoists and mechanical workshop equipment
• Commercial refrigeration and food service equipment
• Spray booths, sandblasters and finishing equipment
• Packing and conveyor equipment
• Medical, dental and veterinary equipment
• Audio-visual, broadcast and production equipment
• Office fit-outs and commercial furniture (tangible fixed assets)
• Gym equipment and leisure assets
• IT infrastructure and server equipment

2026 Rate Environment

The RBA cash rate is 4.35% as of August 2026. Equipment finance uses fixed rates — your repayments don't change when the RBA moves. In 2026, non-bank competition has kept rates competitive. New equipment from established businesses with clean credit prices from 6.29% p.a. Used or specialised equipment sits higher. Review your existing finance rate if it was arranged more than 12 months ago — refinancing at a lower rate may be worthwhile.

Low Doc vs Lite Doc vs Full Doc