Best Farm Equipment Finance in Australia 2026

For most GST-registered Australian primary producers, a chattel mortgage is the best farm equipment finance option. It allows the full GST on the purchase price to be claimed in the next BAS, gives ownership from day one, supports seasonal or annual repayments matched to harvest income, and offers terms from 1 to 7 years. Farm machinery (tractors, headers, balers, sprayers) is purpose-built plant, so the ATO car limit does not apply and the full purchase price is deductible. Contract harvesters running 5+ machines often choose operating lease to stay under warranty, and producers upgrading typically structure trade-in proceeds against a new chattel mortgage.

Australian asset finance lenders fund the full range of agricultural machinery, including tractors, headers and harvesters, air seeders and seeder bars, self-propelled and trailing sprayers, balers, mowers and rakes, chaser bins, telehandlers, feed mixers and feed-out gear, augers, slashers, mulchers and tillage equipment. Both new and used machinery is funded, with specialist lenders accepting equipment up to 25 years old at end of term.

Yes. No-deposit farm equipment finance is widely available in Australia for new machinery from major manufacturers (John Deere, Case IH, New Holland, Fendt, Massey Ferguson, Kubota, Claas). Lenders may require a 10 to 30 percent deposit if the borrower has limited trading history, an impaired credit file, or the machinery is older than 10 years. Equifund's lender panel includes specialists offering 100 percent finance plus GST on prime applications, with seasonal repayments available.

Yes. Seasonal and annual repayment structures are a standard feature of Australian farm equipment finance, designed to line repayments up with harvest, shearing or livestock-sale income rather than a flat monthly schedule. Options include annual-in-arrears repayments after harvest, structured or stepped repayments, and skip-a-month arrangements. These are most commonly available on chattel mortgage and hire purchase through agribusiness and specialist asset-finance lenders. Equifund matches your income cycle to a lender that offers the schedule you need.

A chattel mortgage is a business loan where you own the tractor from day one, claim the full GST credit in your next BAS, and deduct depreciation plus interest. The tractor 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 producers who run machinery for its full 10 to 15 year economic life; finance lease suits ag contractors who want predictable cost and off-balance-sheet treatment.

Yes. Used farm machinery up to 25 years old at end of term can be financed in Australia through specialist asset-finance lenders. Banks typically cap machinery age at 10 to 12 years; specialist and agribusiness lenders extend to 15 years and beyond when the application is supported by industry experience and the machine's service history and hours. Equifund regularly settles finance on used tractors and headers well over 10 years old.

Farm machinery is purpose-built plant, not a passenger vehicle, so the ATO car limit does not apply and the full purchase price can be depreciated. Under a chattel mortgage or hire purchase you claim depreciation plus the interest portion of your repayments, and GST-registered producers claim the GST credit through their BAS. Under a lease the payments are generally deductible instead. Depreciation rates and any instant write-off thresholds change from year to year, so confirm the current rules with your accountant. Source: ATO TR 2023/D1 and GST for business guidance.

On a $250,000 high-horsepower tractor over 5 years at 6.99% per annum, monthly repayments are approximately $4,950 with no balloon, or $3,900 with a 30% balloon. Many producers instead take annual repayments timed to harvest. On a $120,000 baler the equivalent monthly repayment is approximately $2,376 with no balloon. Rates start from 6.99% per annum for prime borrowers and rise to 12% for older machinery or applications without full financials. Total cost depends on rate, term, balloon size, repayment structure, and your tax outcome.

For a GST-registered family farm or sole trader with 2+ years of trading history, a chattel mortgage is typically the best farm equipment finance option. The full GST is claimed in the next BAS, interest and depreciation are tax-deductible, seasonal repayments can be matched to income, and farm machinery is not subject to the ATO car limit so the full purchase price is deductible. Producers not registered for GST can use hire purchase, which spreads the GST across payments and transfers title on the final payment.

Equifund submits one application to a wide panel of Australian lenders, including the four major banks, agribusiness lenders, second-tier banks (Macquarie, Latitude, Pepper, Liberty) and specialist agricultural and asset-finance lenders. Lenders are matched to your profile (credit, trading history, machinery type, age and condition, deposit, GST status and income cycle) and the application is sent only to the 2 to 4 lenders most likely to approve at the lowest rate with the repayment structure you need. Pre-approval and quotes are obligation-free; a brokerage fee applies on settlement and is disclosed in writing before you sign.