Construction companies are among the largest users of commercial truck finance in Australia. Tippers, crane trucks, concrete agitators and general fleet vehicles are routinely financed rather than purchased outright, preserving capital for labour, materials and project costs. This guide covers the main structures, tax considerations and lender criteria relevant to construction businesses. This is general information only and does not constitute financial or tax advice.
Which Truck Finance Structure Suits Australian Construction Companies?
The chattel mortgage is the most common structure for GST-registered construction businesses. It provides immediate ownership, allows the full GST credit to be claimed upfront in the next BAS period, and gives access to depreciation deductions over the truck's effective life.
| Structure | Ownership | GST | When it suits construction |
|---|---|---|---|
| Chattel mortgage | Immediate | Upfront claim | GST-registered businesses holding trucks long term; IAWO candidates |
| Finance lease | Optional at end | Spread over term | Off-balance-sheet preference; specialised vehicles cycled on a schedule |
| Hire purchase | On final payment | Spread over term | Operators not registered for GST; those preferring spread GST impact |
Your accountant should confirm which structure works best for your entity's tax position. See the best truck finance options in Australia for a full lender comparison.
What Types of Trucks Do Construction Businesses Commonly Finance?
Equifund's panel regularly funds the following construction truck types:
- Tippers and side-tippers: the most financed construction truck type. New and used, single-axle through to B-double tipper configurations
- Crane trucks and franna cranes: funded on chattel mortgage or finance lease depending on the business's preference for ownership versus cycling
- Concrete agitators and pump trucks: specialist assets with a smaller lender pool; a broker with a wide panel is particularly valuable here
- Service and support vehicles: utes, vans and light commercials used for site support can be co-packaged in a fleet application with the primary trucks
- Used and older trucks: specialist lenders on the panel fund trucks outside prime bank age limits, useful for construction businesses managing tight margins
Does Instant Asset Write-Off Apply to Construction Trucks in 2026?
Possibly. Under the ATO's Instant Asset Write-Off and temporary full expensing rules, eligible construction businesses may be able to claim a full deduction for a truck's purchase price in the income year it is first used or installed ready for use. The deduction applies per asset.
Eligibility depends on:
- Your business's aggregated annual turnover (ATO thresholds vary by provision and financial year)
- Whether the asset is new or second-hand (some provisions restrict used assets)
- The date the truck was first used or installed ready for use
This is general information only. Your accountant should confirm eligibility before you commit to a purchase or finance structure for tax timing purposes. The ATO thresholds and rules are subject to change.
How Does Project-Based Revenue Affect Construction Truck Finance?
Construction revenue often comes in uneven bursts tied to project milestones, retentions and payment terms. Standard equal monthly repayments can put pressure on the books during low-activity periods between projects.
Structures that suit construction project income:
- Balloon repayment: lower monthly payments during the term with a lump sum at the end, which can be timed against a project completion payment or refinanced
- Deferred first payment: some lenders allow 30 to 90 days before the first repayment begins, giving a new truck time to start generating revenue before payments are due
- Seasonal or irregular payment schedules: available through specialist lenders on the panel for businesses with clearly defined revenue patterns
Can Construction Companies Finance Used Tippers and Crane Trucks?
Yes. Used construction trucks are regularly funded through the Equifund panel. Prime lenders typically cap the truck's age at 10 to 15 years at the end of the finance term. Specialist lenders will fund older or higher-mileage assets where prime bank criteria are not met, though rates are generally higher and terms shorter.
Key factors for used construction truck finance:
- Age and kilometres at the end of the proposed loan term
- Truck condition and service history
- Whether it is a dealer sale or private sale (private sales require additional verification)
- Whether the truck has been modified (tray conversions, crane fitouts, concrete agitator drums)
Which Finance Structure Is Best for a Construction Fleet Upgrade?
When replacing two or more trucks at once, a multi-unit application through a single broker submission often delivers better outcomes than applying truck by truck. Benefits include fewer credit enquiries, fleet pricing on rates and fees, and the ability to spread the application across multiple lenders matched to each truck's profile.
Read our guide on how to finance a multi-truck fleet upgrade in Australia for the full process and lender criteria.
What Documents Do Construction Companies Need for Truck Finance?
Full-doc applications typically require:
- Two years of business tax returns or financial statements
- Three months of business bank statements
- Details of the truck or trucks being financed (make, model, year, VIN, purchase price)
- Details of existing finance commitments
- Identification for directors
Low-doc options using BAS history are available for operators who cannot readily produce finalised accounts. Equifund can confirm which lenders accept low-doc construction truck applications for your situation.
How Do Construction Companies Compare Commercial Vehicle Lenders in Australia?
Beyond rate, the critical variables for construction truck finance are:
- Maximum truck age and kilometres the lender will fund
- Willingness to fund used or modified trucks (crane fitouts, agitator drums, tray conversions)
- Settlement speed relative to your purchase timeline
- Private-sale funding availability if not buying from a dealer
- Balloon limits and deposit requirements
Equifund's wide panel of specialist lenders covers prime, near-prime and specialist construction truck finance. Apply at equifund.com.au/truck-finance or call 1300 464 805.
Line up your finance before you commit. Compare trucks for sale from verified dealers nationally, then run your numbers on the Finance Calculator.
Frequently Asked Questions
Which truck finance structure suits construction companies in Australia?
Most construction companies use a chattel mortgage on their trucks. It provides immediate ownership, allows the GST credit to be claimed upfront and gives access to depreciation deductions. Finance lease is used where off-balance-sheet treatment matters. Hire purchase suits operators wanting eventual ownership without the upfront GST claim. The right structure depends on your GST position, how long you hold the truck and your accountant's tax advice.
Can construction companies get a chattel mortgage on a used tipper?
Yes. Chattel mortgages are available on used tippers subject to lender age and kilometre limits, typically up to 10 to 15 years old at the end of the loan term. You own the truck from day one, claim GST upfront and depreciate the asset. The truck is the security for the loan. A broker with a wide panel can find lenders that fund older or higher-mileage tippers that major banks decline.
Does Instant Asset Write-Off apply to construction trucks in 2026?
It may. Eligible construction businesses that meet the ATO's aggregated annual turnover thresholds may be able to deduct the full cost of a truck in the income year it is first used or installed ready for use. Eligibility depends on your turnover, the asset's start date and the ATO rules in force for the relevant financial year. Speak to your accountant before structuring a purchase for tax purposes. This is general information only.
How does project-based income affect construction truck finance?
Construction businesses often have lumpy revenue tied to project milestones and payment terms. A balloon repayment structure reduces the regular monthly payment and allows a larger lump-sum payment at the end of the term, which can be timed against a project completion payment. Some lenders also offer deferred first payment options that give 30 to 90 days before repayments begin.
Can construction companies finance a mixed fleet of tippers, crane trucks and service vehicles?
Yes. Equifund can package a multi-unit application covering tippers, crane trucks, concrete agitators and service vehicles under a single or coordinated credit submission. Each unit is matched to the lender most likely to fund it based on its age, type and the business's financial profile. Fleet applications often deliver better pricing than individual truck applications.
What documents do construction companies need for truck finance?
A full-doc construction truck finance application typically requires two years of business tax returns or financial statements, three months of business bank statements, details of the truck or trucks being financed, and identification for directors. Low-doc options using BAS history are available for operators who cannot readily produce finalised tax returns, particularly smaller operators or sole traders.
How long do construction truck finance terms run?
Construction truck finance terms typically run from 24 to 84 months depending on the truck's age, the lender and the finance structure. Longer terms reduce monthly repayments but increase total interest paid. Most prime lenders cap the term on older trucks to ensure the truck is not too old at the end of the loan period.
Can a construction company get truck finance with existing debt?
Yes, though the amount of existing finance relative to business revenue is a key lender assessment factor. Lenders look at the total debt-servicing capacity of the business, not just individual loans. A broker can present the application in the most favourable light and identify lenders whose exposure limits and credit criteria suit the business's current debt profile.
What is hire purchase and when does it suit construction businesses?
Hire purchase is a finance structure where the lender technically owns the truck during the term and title transfers to the business on the final payment. GST is spread over the repayments rather than claimed upfront. It suits construction businesses that want eventual truck ownership but prefer to spread the GST impact, or where the business is not registered for GST.
Can a construction business get $0 deposit on truck finance?
Yes. $0 deposit is available on prime construction truck finance applications where the business has a strong financial profile, a clean credit history and the truck meets the lender's age and condition criteria. Some lenders require a deposit on older or higher-mileage trucks. A broker can advise on which lenders in the panel offer $0 deposit for your specific truck and profile.
How quickly can construction truck finance settle?
Settlement on construction truck finance typically takes 24 to 72 hours for straightforward applications with complete documentation. Pre-approval is usually available within one business day. Dealer purchases tend to settle faster than private-sale purchases, which require additional vehicle verification. Fleet or multi-unit applications may take three to seven business days.
Does a construction company need to have been operating for a minimum period to get truck finance?
Most prime lenders require at least two years of ABN trading history for a standard commercial truck finance application. Some lenders consider applications from businesses with 12 months of trading where there is strong BAS history and a good asset security profile. Newer businesses may be assessed against personal assets or director credit, or directed to specialist lenders with different criteria.
How Equifund Can Help
Financing a truck or a whole fleet is where a broker earns its keep. Instead of taking whatever one bank offers, Equifund works across a wide panel of specialist lenders and matches your business and each asset to the lender most likely to fund it on the best terms.
- Pre-approval in 24 hours
- No impact on your credit score to get a rate
- Finance amounts up to $2M
- Owner-operators, ABN holders and company structures welcome
Ready to get started? Apply Now or run the numbers on the Finance Calculator.
Any rates, thresholds, terms and timeframes mentioned are indicative only and depend on lender credit assessment and current ATO rules at the time you apply. Confirm your own position with your accountant and at quote stage before relying on them.
Disclaimer: This article is general information only and does not constitute financial, tax or legal advice. It does not take into account your personal circumstances, objectives or needs. Equifund Financial Group is a commercial finance broker, not a registered tax agent or licensed financial adviser. Tax treatment depends on individual circumstances and current ATO rules. Confirm with your accountant before relying on any tax position. All finance is subject to lender credit assessment, terms and conditions. Rates, lead times and product availability are indicative and current at time of writing, and may change. Market figures, sales data and forecasts cited reflect publicly available data at the time of publication.