Equipment Finance Tax Deductions

Loan Calculator

Estimate your repayments before speaking with an Equifund specialist.

Finance type

Loan amount

Enter the approximate amount you’d like to finance.

Annual interest rate 8.00% p.a.

3% 18%

Term 60 months

12 months 84 months

Balloon / residual 0% of loan

0% 60%

Percentage of the loan left owing as a final lump-sum (balloon / residual).

Estimated repayments

Monthly repayment

$0.00

Approx. weekly

$0.00

Loan amount $0.00

Interest rate 0.00% p.a.

Term 0 months

Balloon / residual $0.00

Total repayable (incl. balloon) $0.00

Estimated interest over term $0.00

This calculator provides an estimate only and does not constitute an offer of finance. Actual repayments will depend on your profile, lender and product.

Understanding the tax deductions available when you finance business equipment can save your business thousands every year. GST input credits, depreciation, interest deductions, and the instant asset write off all reduce the effective cost of your equipment. This guide explains each deduction and how to claim them.

Check Eligibility Now Get Pre-Approved

30-second check. No impact on your credit score.

Choose your industry

Choose the category that best describes your finance requirement.

Transport & Logistics

Farming & Agriculture

Construction & Earthmoving

Other

Submitting this form does not lock you into finance.

$50M+ in equipment financed

3x faster decisions than major banks

Dedicated support to find the best solutions

ASIC licensed & regulated

TAX DEDUCTIONS GUIDE

Tax Deductions That Reduce the Real Cost of Equipment Finance

The exact deductions available depend on your business structure, GST registration status, the type of equipment, and the finance structure you choose (chattel mortgage vs finance lease vs hire purchase). This guide covers the principles, but always confirm the specifics with your accountant for your individual situation.

Equipment finance is not just about acquiring assets. It is also a tax planning tool. The right finance structure combined with correct tax treatment can reduce the effective cost of your equipment by 30% or more. GST credits, depreciation, and interest deductions work together to lower your tax bill significantly.

Trucks

Semi-Trailers & Trailers

Refrigerated trucks

Excavators & Loaders

Cranes & Site Machinery

Trailer Trucks

Tractors & Harvesters

Yellow Goods

Skid Steers & Access Equipment

GST input tax credits

If you are GST registered and purchase equipment with a chattel mortgage, you can claim the full GST as an input tax credit on your next BAS return. On a $220,000 purchase, that is $20,000 back within weeks.

Depreciation deductions

As the owner of a business asset, you can claim depreciation as a tax deduction. The rate depends on the asset type and your depreciation method. Trucks and vehicles typically depreciate over 8 years. Heavy equipment varies.

Interest deductions

The interest component of your equipment finance repayments is a tax deductible business expense. Over a 5 year loan, interest deductions can be significant, particularly in the early years when interest makes up a larger portion of each payment.

Instant asset write off

For eligible assets costing less than $20,000 (the current threshold until June 30 2026), the full cost can be deducted immediately rather than depreciated over time. This accelerates the tax benefit into the current financial year.

Get Pre-Approved Today

Claim GST upfront on next BAS
Depreciate the asset over its life
Deduct interest on repayments
Balloon payment does not affect deductions
Asset appears on your balance sheet
Most popular structure for GST registered businesses

GST claimed progressively each BAS
Lease payments deductible as operating expense
No separate depreciation claim
Residual value affects total deductions
Asset may be off balance sheet
Suits businesses preferring lower payments

GST treatment varies by agreement
Interest component is deductible
Depreciation claimable on the asset
Similar tax profile to chattel mortgage
Nominal purchase price at end
Common in some industry sectors

Full deduction in year of purchase
Must cost less than $20,000 (current)
Must be installed and ready for use
New and used assets qualify
No limit on number of assets
Threshold drops to $1,000 after June 2026

HOW THE PROCESS WORKS

How to Maximise Your Equipment Finance Tax Benefits

Work with your accountant and broker together to optimise the tax outcome.

Complete the Form
In 60 Seconds

Provide us with some basic information about your business and financing requirements via our secure website.

Speak With an
Industry Specialist

Your brokers assess your requirements and guide you through gathering the right documents to secure approval quickly.

Get Pre-Approved
Over the Phone

Receive a clear pre-approval with transparent terms and repayment options that suit your cash flow.

Financing
Secured

Your finance broker will work with you to source the best funding offers available and guide your application to success.

Barinder Singh

Transport Operator

Non-property owner

No deposit

24hr turnaround

2025 Tipper Trailer

Transport

$150,000

Barinder needed a new tipper trailer to keep up with growing contract work but didn’t own property and didn’t have a deposit available. Traditional lenders declined the deal based on security requirements.
We structured the finance around the strength of the business income and the asset itself, delivering approval and settlement within 24 hours so the trailer could be put straight to work.

Get a Quote Like This

2005 CAT Excavator

Contractor

$60,000

Neil was purchasing a used excavator to support ongoing civil jobs but needed a simple low-doc solution without extensive financials slowing the process down.
We secured approval within 24 hours using a streamlined low-doc structure , allowing him to secure the machine before another buyer stepped in

Get a Quote Like This

Bradley Moore

Owner-Driver

Private sale

Low Doc

24hr approval

2019 Scania Truck

Contractor

$100,000

Bradley found the right truck through a private seller and needed fast finance to avoid losing the deal. The transaction structure made traditional lenders hesitant.
We arranged a low-doc facility tailored to a private sale purchase and delivered approval inside 24 hours, enabling Bradley to secure the vehicle and get back on the road generating income.

Get a Quote Like This