Best Construction Equipment Finance in Australia 2026

For most GST-registered Australian construction businesses, a chattel mortgage is the best construction equipment finance option. It allows the full GST on the purchase price 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. Construction equipment (excavators, loaders, dozers, cranes) is exempt from the ATO car limit because it is built for purpose, not passenger carrying. Civil contractors with 5+ machines often choose operating lease for off-balance-sheet treatment, and operators upgrading existing equipment typically structure trade-in proceeds against a new chattel mortgage.

Australian asset finance lenders fund the full range of construction and earthmoving equipment, including excavators (mini, midi, full-size and long-reach), wheel loaders, skid steers, bulldozers, motor graders, backhoes, telehandlers, articulated dump trucks, mobile cranes, truck-mounted cranes, tower cranes, compactors, rollers, asphalt pavers, concrete equipment, rock breakers, crushers and screeners. Both new and used machinery is funded, with specialist lenders accepting equipment up to 25 years old at end of term.

Yes. No-deposit construction equipment finance is widely available in Australia for new machines from major manufacturers (Caterpillar, Komatsu, Volvo, Hitachi, Kobelco, John Deere, JCB, Bobcat). Lenders may require a 10 to 30 percent deposit if the borrower has limited trading history, an impaired credit file, or the equipment is older than 10 years. Equifund's lender panel includes specialists offering 100 percent finance plus GST on prime applications.

A chattel mortgage is a business loan where you own the excavator from day one, claim the full GST credit in your next BAS, and deduct depreciation plus interest. The excavator sits on your balance sheet. A finance lease keeps the lender as legal owner; you pay deductible lease payments and at term end can buy out the residual, refinance it, or hand the machine back. Chattel mortgage suits operators who run machines for their full 10 to 15 year economic life; finance lease suits civil contractors who want predictable monthly cost and off-balance-sheet treatment.

Yes. Used construction equipment up to 25 years old at end of term can be financed in Australia through specialist asset-finance lenders. Banks typically cap equipment age at 10 to 12 years; specialist lenders (Capital Finance, Angle Finance, Metro Finance, Pepper Money Asset Finance) extend to 15 years and beyond when the application is supported by industry experience, a pre-purchase inspection and clean serial-number history. Equifund has settled finance on excavators and loaders up to 25 years old.

Pre-approval for construction equipment 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, fast enough for auction purchases or replacement of a failed machine. Unsecured business loans up to $250,000 can settle the same day for emergency mid-job replacements. For a smooth same-week settlement, have your equipment quote, payout figure (if trading in), driver's licence, ABN, and 6 months of business bank statements ready.

The $20,000 instant asset write-off allows eligible small businesses (aggregated annual turnover under $10 million) to immediately deduct the cost of construction equipment costing less than $20,000, on a per-asset basis. Machines over $20,000 are placed in the small business simplified depreciation pool and depreciated at accelerated rates. The measure was extended in the 2024-25 Federal Budget through 30 June 2026. Construction equipment is exempt from the ATO car limit so the full purchase price is deductible. Source: ATO instant asset write-off and TR 2023/D1.

On a $150,000 mid-size excavator over 5 years at 7.5% per annum, monthly repayments are approximately $3,008 with no balloon, or $2,376 with a 30% balloon. On a $250,000 wheel loader the equivalent monthly repayments are approximately $5,013 with no balloon, or $3,960 with a 30% balloon. Rates start from 6.99% per annum for prime borrowers and rise to 11% for older equipment or sole-trader applications without full financials. Total cost depends on rate, term, balloon size, and your tax outcome (deductions, GST recovery).

For a GST-registered sole trader with 2+ years of trading history buying construction equipment in Australia, a chattel mortgage is typically the best option. The full GST is claimed in the next BAS, interest and depreciation are tax-deductible business expenses, and construction equipment (excavators, loaders, dozers, cranes) is exempt from the ATO car limit so the full purchase price is deductible. Sole traders not registered for GST can use hire purchase which spreads the GST across payments.

Yes. Equipment refinance (sometimes called sale-and-leaseback) lets established Australian operators borrow against equipment they already own outright. The lender pays the agreed asset value upfront and you make repayments back over 1 to 5 years. Common uses: funding new contracts, bridging large mobilisations, or restructuring after a high-revenue period. Available on chattel mortgages 1 to 7 years old where the asset has substantial remaining value. Documentation is similar to a fresh equipment finance application.

Banks finance mainstream construction equipment from major manufacturers but typically decline highly specialist machinery (tower cranes, rock crushers, mobile screeners, asphalt batching plants) due to narrower resale markets. Specialist asset-finance lenders (Capital Finance, Angle Finance, Metro Finance and equipment-specific financiers) actively fund these niches with rates 1 to 3 percent higher than mainstream chattel mortgage. Equifund's broker panel includes the specialist lenders who quote on niche assets.

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 construction-equipment financiers (Capital Finance, Angle Finance, Metro Finance, Westpac Equipment Finance, BOQ Equipment Finance). Lenders are matched to your profile (credit, trading history, equipment type, age and condition, deposit, GST status) and the application is sent only to the 2 to 4 lenders most likely to approve at the lowest rate. Pre-approval and quotes are obligation-free; a brokerage fee applies on settlement and is disclosed in writing before you sign.