Best Business Vehicle Finance in Australia 2026

For most GST-registered Australian businesses, a chattel mortgage is the best business vehicle finance option. It allows the full GST on the purchase price (capped at the ATO car limit GST component, $6,334 for FY2025-26 passenger vehicles) to be claimed in the next BAS, gives the borrower ownership from day one, supports balloon payments to lower monthly costs, and offers terms from 1 to 7 years. Salary-packaged employees should consider a novated lease. Fleet operators often prefer operating lease for off-balance-sheet treatment.

Yes, GST-registered businesses can claim the GST on a business vehicle financed via chattel mortgage in the BAS following the purchase, capped at one-eleventh of the ATO car limit ($69,674 for FY2025-26, equating to a maximum GST claim of $6,334) for passenger vehicles. Commercial vehicles designed to carry more than one tonne or more than 8 passengers (most utes, vans and trucks) are exempt from the car limit and can claim the full GST. Source: ATO TR 2023/D1 and ATO car cost limits.

A chattel mortgage is a business loan where the company owns the vehicle from day one and claims GST, depreciation and interest as business deductions. A novated lease is a three-way agreement between an employee, employer and lender where the employer makes the lease payments from the employee's pre-tax salary. Chattel mortgage suits business owners and sole traders; novated lease suits PAYG employees, particularly with electric vehicles which are FBT-exempt under the Treasury Laws Amendment (Electric Car Discount) Act 2022 if priced below $91,387.

Yes. Used business vehicles up to 15 years old at the end of the loan term can be financed in Australia. Banks typically cap vehicle age at 10 years; specialist asset finance lenders extend to 15 years and beyond. Equifund's panel of 80+ lenders includes specialists who approve older fleet vehicles, ex-rental utes and second-hand vans where the borrower's profile and the vehicle's condition support the application.

The $20,000 instant asset write-off allows eligible small businesses (aggregated annual turnover under $10 million) to immediately deduct the cost of business vehicles costing less than $20,000, on a per-asset basis. For passenger vehicles, the deduction is capped at the ATO car limit ($69,674 for FY2025-26). Vehicles over $20,000 are placed in the small business pool and depreciated. The measure was extended in the 2024-25 Federal Budget; confirm current eligibility with your accountant. Source: ATO instant asset write-off.

Yes. No-deposit business vehicle finance is widely available in Australia for both new and used utes, vans, cars and light trucks. Lenders may require a 10 to 20% deposit if the borrower has limited trading history, an impaired credit file, or the vehicle is older than 10 years. Equifund's lender panel includes lenders offering 100% finance plus GST and on-roads.

Pre-approval for business vehicle finance can be issued within 24 hours when 6 months of business bank statements, the most recent BAS and proof of identity are provided. Settlement on a chattel mortgage typically takes 2 to 5 business days. Unsecured business loans up to $250,000 can settle the same day, suitable when the vehicle dealer requires immediate payment.

Yes. New ABNs (under 12 months old) can get business vehicle finance through low-doc lenders that assess applications on bank statements, prior industry experience and deposit rather than full financial statements. Equifund has 12+ lenders on panel that approve ABNs as young as 1 day old, particularly for tradies, transport operators, farmers and mining contractors buying their first work vehicle.

Yes. The Luxury Car Tax (LCT) threshold for FY2025-26 is $80,567 for standard passenger vehicles and $91,387 for fuel-efficient vehicles (fuel consumption under 7L/100km, including most EVs and hybrids). Vehicles priced above the threshold attract LCT at 33% on the GST-exclusive amount above the threshold. The ATO depreciation car limit is separate at $69,674 for FY2025-26. Commercial vehicles built to carry more than one tonne are exempt from both the car limit and LCT. Source: ATO LCT thresholds.

Yes. Utes designed to carry more than one tonne (most one-tonne dual-cabs and singles such as the Toyota HiLux SR, Ford Ranger XL and Isuzu D-Max SX) are classified as commercial vehicles by the ATO and exempt from the car cost limit and Luxury Car Tax. The full GST and full purchase price are deductible (subject to depreciation rules). Finance is typically structured as a chattel mortgage, with terms from 1 to 7 years and rates from 6.99% per annum for prime borrowers.

For a fleet of business vehicles, an operating lease or finance lease is typically the best option. Operating lease keeps vehicles off the balance sheet, includes maintenance and tyres in fixed monthly payments, and returns the vehicle at term end with no residual risk, making it ideal for 3 to 5 year refresh cycles. Finance lease offers similar off-balance-sheet treatment with an optional residual buyout. Larger fleets (10+ vehicles) can negotiate dedicated fleet rates and bulk-purchase discounts. Equifund structures fleet facilities up to $5 million.

Equifund submits one application to a panel of 80+ Australian lenders, including the four major banks, second-tier banks (Macquarie, Latitude, Pepper, Liberty) and specialist asset finance lenders (Capital Finance, Westpac Equipment Finance, Angle Finance, Metro Finance). Lenders are matched to your profile (credit, trading history, vehicle age, deposit, GST status, salary-package eligibility) and the application is sent only to the 2 to 4 lenders most likely to approve at the lowest rate. There is no fee to the borrower; the broker is paid by the successful lender.