Truck and Transport Finance in Australia: How It Works, What Lenders Want, and What It Costs
Structure, deposit, age caps, balloons and the owner-driver pathway, with the two things almost nobody explains: what the business purpose declaration you sign actually gives up, and how the mass rules that changed on 1 August 2026 alter what the truck can earn and therefore how the facility should be sized.
The short answer
Truck finance in Australia is usually written as a chattel mortgage, a commercial hire purchase or a finance lease. The structure decides who owns the asset, who claims the depreciation, and how GST is handled. Deposits run from zero for established operators buying new, to 10 per cent or more for a first-year owner-driver or an older used asset. Most lenders cap the truck’s age at the end of the term rather than at purchase. Because the credit is taken predominantly for business, it sits outside the National Credit Code, so responsible lending and Best Interests Duty do not attach to it, and the business purpose declaration you sign is what puts it there. Two 2026 facts change the arithmetic: the $20,000 instant asset write-off is now permanent, and from 1 August 2026 general mass limits rose to concessional levels, so a given unit can legally carry more than it could last year.
The three structures, and what each one decides
The structure decision matters more than most operators realise, and it is made once, at application, then lived with for the life of the facility. A chattel mortgage, a commercial hire purchase and a finance lease are three different legal arrangements producing three different tax positions, three different ownership positions and three different balance sheet effects.
Chattel mortgage
The most common structure for owner-operators. You own the asset from day one and the lender takes a registered security interest over it on the Personal Property Securities Register. Where the business is registered for GST, the GST credit on the purchase price is generally claimable upfront rather than spread across the payments. The asset sits on your balance sheet, depreciation is available to you, and the interest portion of each payment is generally deductible. The lender’s security is discharged when the loan is repaid.
Commercial hire purchase
Functionally similar, legally a hire arrangement that transfers ownership to you at the end of the term. The tax outcome is broadly comparable in most operator scenarios, though the timing of the GST credit can differ. Fewer lenders lead with it now than a decade ago, most default to chattel mortgage for new business, but it remains available.
Finance lease and operating lease
The lender owns the asset and you pay a rental over the term. Lease payments are generally deductible as an operating expense. At the end you typically have the option to purchase for an agreed residual, return the asset, or extend. An operating lease sits further along the same spectrum, closer to a true rental, with the lender retaining the asset risk.
Tax treatment depends on structure and on your own circumstances, so confirm it with your accountant before signing. The wrong structure will not usually stop the finance working. It will produce a less efficient outcome that you carry for the whole term.
| What it decides | Chattel mortgage | Hire purchase | Finance lease |
|---|---|---|---|
| Who owns the asset during the term | You do | Lender, transfers at end | Lender |
| Asset on your balance sheet | Yes | Yes | Varies by lease type |
| GST credit on the purchase | Generally upfront | Generally upfront | On the lease payments |
| Who claims depreciation | You | You | Lender |
| What is deductible | Interest portion | Interest portion | The lease payment |
| End of term | Asset is yours | Asset is yours | Buy, return or extend |
Which column suits you depends on your tax position, your cashflow priorities, and whether you want the asset on the balance sheet at all. Our chattel mortgage guide covers the most common of the three in more depth.
How much deposit do I need for a truck loan?
Deposit requirements vary widely, and the dealer’s window sign is honest for some buyers and not for others. What the lender actually asks for is a function of three things: how long you have been trading, what you are buying, and which lender pool the file lands in.
- Established operators, three or more years trading, buying new. Zero-deposit finance is often available. The lender’s confidence comes from the trading record rather than from the cash, and business activity statements are what carry it.
- The same operators buying used. Deposits of 10 to 30 per cent are more common. A used asset has a less predictable resale value and a steeper recovery risk on default, and the deposit is how the lender closes that gap. A five-year-old prime mover at 80 per cent of value is a different proposition from a new one at 100 per cent.
- Owner-drivers in year one. A deposit is usually required even with a specialist lender, commonly from 10 per cent. How much depends on the asset, on your PAYG history in the same industry, and on whether there is a work contract behind the cashflow case.
The deposit is not a fixed rule. It is the lender pricing the gap between what the asset is worth on a bad day and what it is worth on a good one. Change the asset and the deposit moves.
Can a new owner-driver get truck finance?
Usually yes, but the lender pool narrows and the file has to be packaged for it. The question a lender is answering is not how long the business has existed. It is how long this person has been doing this work.
A driver who spent five years as a PAYG employee in waste collection and is now moving to an ABN to take over a subcontract route looks very different to a lender from someone leaving an office job for transport. The payslips count. Most lenders apply something close to a two-years-in-the-same-industry test, and it is an industry test rather than a business-trading test.
A year-one owner-driver file typically needs:
- PAYG employment history showing two or more years driving in the same field
- Work contracts, subcontractor agreements, or a letter of intent from a haulage company
- A deposit, commonly 10 per cent or more depending on asset and lender
- A sensible asset, a sub-seven-year-old prime mover or a new rigid matched to the work, rather than something the lender’s credit team associates with elevated risk
- Evidence of your personal position: bank statements, existing liabilities, credit file
- ABN, GST registration where required, and the basic business setup done
That profile usually sits with specialist non-bank commercial lenders rather than the bank-owned commercial divisions, and the pricing reflects it. The pathway is real and it converts when the file is built properly.
The most common reason a year-one application fails is the asset, not the borrower. Someone with strong industry experience trying to fund a twelve-year-old prime mover at full value is asking the lender to take more asset risk than the borrower risk justifies. The same person on a four-year-old workhorse with 10 per cent down is a different conversation entirely.
Age and condition limits
Most commercial lenders cap the age of the asset at the end of the term, not at purchase. The logic is straightforward: if the borrower defaults in year five of a five-year loan, the lender needs the asset to still be worth something.
Typical industry ranges, which vary by lender:
- Prime movers and heavy rigids: commonly capped at 12 to 15 years old at end of term
- Light and medium rigids: similar, sometimes slightly tighter
- Trailers: longer, often 20 years or more at end of term, because trailer depreciation is slower
- Specialist bodies such as waste compactors, refrigerated units and tankers: variable, sometimes tighter, where component obsolescence is the concern rather than the chassis
This is worth restating because it inverts the usual assumption. A strong borrower buying an asset outside a lender’s comfort zone gets a harder time than an average borrower buying inside it. On truck finance, the asset frequently decides the deal.
New vs used, where the money actually goes
The new-versus-used question is rarely just about the sticker. Three things move together.
Rate. New assets generally attract lower rates. The condition is known, the depreciation curve is known, there is a manufacturer’s warranty behind it, and dealer promotions on new stock sometimes price below the base commercial rate.
Deposit. New assets for established operators often require none. Used assets commonly require 10 to 30 per cent depending on age.
Total cost of ownership. A new truck costs more and sheds value fastest in years one to three. A three-year-old truck has already absorbed that, and the next owner pays a much smaller depreciation cost per year. For an owner-driver running hard, high-kilometre work where the asset is being consumed regardless, the used case is often the stronger one on total cost even after the higher rate.
What used buyers have to manage that new buyers do not
Three things, and the first is more technical than most guides admit.
The PPSR search, and the timing of it. A search on the Personal Property Securities Register tells you whether the truck carries an existing security interest from a previous owner’s finance, and a vehicle search costs $2. The register is also more than an information service: the Act contains a rule under which a buyer takes a prescribed motor vehicle free of a security interest, but it is anchored to a search window that opens only the day before the sale. A search you ran three weeks ago while you were deciding is information, not protection. Our guide to the PPSR check before buying a used truck covers the timing, the four exceptions that switch the protection off, and why the identifying number on a trailer decides whether it is covered at all.
Pre-purchase inspection. Most commercial lenders require an independent inspection on used assets above a certain age. A few hundred dollars against a six-figure asset is not a cost worth arguing about.
Service history. A complete history attracts better terms. On older or specialist assets it is sometimes the difference between a deal and no deal.
Why truck finance is not car finance
The single most important practical difference is the car limit. A commercial vehicle with a payload of one tonne or more is not caught by it.
The car limit applies to passenger vehicles, other than motorcycles and similar, designed to carry fewer than nine passengers and a load of less than one tonne. Payload is calculated as the gross vehicle mass on the compliance plate minus the basic kerb weight. Where the limit applies, it caps the cost you can use to work out the vehicle’s decline in value, and the excess above it cannot be claimed under any other depreciation rule.
For the 2026 to 2027 income year the car limit is $69,883. The arithmetic is blunt: buy a $150,000 dual-cab that falls under the limit and $80,117 of what you paid never becomes a deduction at all. Spend the same money on a vehicle with a one-tonne-plus payload and the whole cost goes into the depreciation calculation. The GST side follows the same cap. Where the limit applies, the maximum GST credit is one eleventh of it, which for 2026 to 2027 is $6,353.
The payload plate is a tax document. On a vehicle near the one-tonne line it decides whether roughly $80,000 of purchase price is deductible or simply gone.
Beyond the car limit, three further differences:
- Different lender pools. The lenders funding prime movers are largely not the lenders funding passenger vehicles, and their pricing, asset assessment and credit policies differ accordingly.
- Different documentation. Commercial vehicle finance assumes business use, so the questions run to income structure, ABN status and trading history. Consumer car finance runs a consumer credit assessment instead.
- Different regulatory framework. This is the one worth its own section.
Our commercial vehicle finance page covers the wider category, and car loans covers the consumer side.
The declaration you sign, and what it gives up
Most articles handle this with a sentence saying commercial lending is unregulated. That is close enough to be useless.
The National Credit Code applies only where credit is provided wholly or predominantly for personal, domestic or household purposes, or for residential investment property. Business-purpose credit does not get carved out. It never satisfies that test in the first place, which is why the responsible lending obligations in Chapter 3 and Best Interests Duty do not reach it, and why the lender’s own commercial credit policy governs instead. Predominance has a definition: the purpose for which more than half the credit is intended to be used. On a truck working six days a week that is not a close question. On a dual-cab that tows a boat at weekends it can be.
The business purpose declaration in the finance pack is the document that triggers all of it, and it is not a formality. It shifts a presumption rather than granting an exemption, it is ineffective where the lender knew or would have had reason to believe otherwise on reasonable inquiries, and inducing a false one is an offence carrying up to 2 years imprisonment. If the truck is genuinely a business asset, the declaration is accurate and the commercial framework is the right one. If someone is encouraging you to sign one on a vehicle that is really a family car, that is the situation the offence provision exists for. Our guide to the business purpose declaration sets out the mechanism, the three ways a declaration fails, and exactly which protections you step outside.
Not sure which side of the line your file sits on?
Bring the dealer’s quote and the finance pack. We will tell you what structure the file suits, whether the purpose test is straightforward on your facts, and what the numbers look like across the panel before anything is submitted anywhere. Our licence is ACL 390611, searchable on ASIC’s professional registers. What we charge you: nothing, on any loan type.
Balloon payments, and what the lower repayment costs
A balloon is a lump sum due at the end of the term, commonly 20 to 40 per cent of the original asset value. It lowers the monthly payment by leaving part of the principal unamortised. For operators on seasonal or contract-dependent cashflow it is a genuine structural tool. Used without an end-of-term plan it is a deferred problem with interest attached.
Here is the trade with numbers on it. A $120,000 truck financed over five years, at an illustrative 8.00 per cent per annum, monthly in arrears. We publish no rates, and this figure is used only to make the comparison arithmetic visible.
| Structure | Monthly payment | Total interest over 5 years | Extra interest vs no balloon |
|---|---|---|---|
| No balloon | $2,433.17 | $25,990 | Nil |
| 20 per cent balloon, $24,000 | $2,106.53 | $30,392 | $4,402 |
| 30 per cent balloon, $36,000 | $1,943.22 | $32,593 | $6,603 |
The 30 per cent balloon saves $489.95 a month and costs $6,603 more in interest across the term. That is the whole trade, stated plainly. It is a reasonable price for cashflow if the cashflow is what is scarce, and a poor one if it is being taken by default because the monthly number looked better on the quote.
The lump sum then has to come from somewhere. Three options: pay it out from cash or savings, refinance it into a new facility, or sell the asset and clear it from the proceeds. The third works when the asset still has real resale value at the end of the term, which is a question of asset choice and market conditions on the day.
The second option is where the cost compounds. Refinance that $36,000 balloon over a further three years at the same illustrative 8.00 per cent and the payment is $1,128.11 a month. Total interest across both facilities comes to $37,205 against $25,990 on the straight five-year loan, so $11,215 more, and you have carried the same truck for eight years rather than five. Do that across a small fleet without a plan and you are paying interest on the same money twice.
As a working rule: 20 to 30 per cent on an asset with strong resale characteristics is defensible. Forty per cent on a depreciating specialist body is hard to justify. Tax treatment of a balloon depends on the loan structure, so raise it with your accountant.
What changed on 1 August 2026
This is the section that is missing from every other truck finance article we can find, and it is the one with the clearest link to how a facility should be sized.
Finance is written against what the asset can earn. On a heavy vehicle, and under the Heavy Vehicle National Law a heavy vehicle is one with a gross vehicle mass or aggregate trailer mass of more than 4.5 tonnes, what it can earn is capped by what it can legally carry. Those caps moved on 1 August 2026.
The National Heavy Vehicle Regulator’s changes to mass and dimension requirements did five things:
- General mass limits were raised to align with the previous concessional mass limits. The increase is up to one tonne for a vehicle or combination with an allowable gross mass of 55 tonnes or less, and up to two tonnes above 55 tonnes.
- Mass accreditation is no longer required to access concessional mass limits. The scheme membership that used to gate the higher limits is not the gate any more.
- Euro VI concessions were extended to include road trains.
- The vehicle length limit rose from 19 metres to 20 metres. B-doubles are not included and are to be considered in a future amendment.
- The tow mass ratio was amended.
At the axle-group level, the quad-axle limits moved: 15.0 to 15.5 tonnes for single tyres under 375 millimetres, and 20.0 to 21.0 tonnes for tyres of 375 millimetres or wider or dual tyres, with axle groups of five or more on low loaders treated the same way.
One limit did not move, and it is the one that binds in practice. The loaded mass must still not exceed the manufacturer’s rating: the gross vehicle mass for a rigid, the gross combination mass for a combination. The regulatory ceiling went up. The engineering ceiling did not.
A regulatory change that lifts payload is a revenue change before it is a compliance change. If the unit can legally carry a tonne more per trip, the facility should be sized against what it now earns, not against last year’s number.
Three consequences worth putting in front of a lender.
The cashflow case is stronger than the historic figures show. If you are financing a unit whose legal payload has risen, servicing evidence built on last year’s tonne-kilometres understates the asset. That is worth stating explicitly in the submission rather than leaving the assessor to find it.
Specification decisions changed value. Where axle configuration or tyre choice now sits either side of a limit that moved, two otherwise similar units can have materially different earning capacity. On a used purchase, this is a diligence question before it is a finance question.
An accreditation-driven fleet decision may need revisiting. Where an operation was structured around accessing concessional limits through accreditation, the reason for that structure has changed. Whether the accreditation still earns its keep for other reasons is a separate question, and one for your compliance advisers rather than your broker.
None of this is finance advice about compliance, and we do not give it. Confirm what applies to your combination with the NHVR or your compliance adviser. The point here is narrower: a change in legal payload is a change in the revenue the asset supports, and lenders size facilities against revenue.
Finance by asset type
Lender pool, deposit and term all shift with the asset class.
Prime movers and semi-trailers
The largest borrowing amounts in standard truck finance, and the deepest lender pool, with bank-owned commercial divisions and specialist operator-finance lenders both competing. Terms typically four to seven years. Age caps are tightest on the prime mover and looser on the trailer. Established operators commonly access zero-deposit finance on new units. First-year owner-drivers take the specialist path described earlier.
Rigid trucks, 8 to 24 tonnes GVM
Broader lender access than prime movers, because the asset class supports a wider operator base: couriers, owner-operators and small fleets across construction, food service and distribution. Turnarounds tend to be quicker, partly because the deal sizes are smaller and partly because more lenders compete in the band.
Waste, refrigerated and specialist bodies
Body builders and post-purchase modification add complexity. Some lenders require staged drawdown, releasing funds against the chassis first and against the body once it is built and installed. Inspection requirements are tighter. Compactors, tippers with hydraulics and refrigerated panel work each attract their own pricing and lender selection.
Trailers
Often financed separately from the prime mover, particularly where the operator is upgrading the truck and keeping existing trailers. Some lenders bundle both into one facility, others require separate applications, and separate can deliver better terms on each because different lenders specialise in different asset types. Terms commonly run five to seven years given slower depreciation. If you are buying a used trailer privately, revisit the identifying-number point in the used-asset section above.
Buses and coaches
A different lender pool again, and the coach-versus-route-bus distinction matters to underwriters. A tourist coach financed against a private hire business carries a different risk profile from a school route bus financed against a long-term contract, and contract evidence is often a core part of the file rather than a supporting document.
Our asset finance overview covers the wider category, and fleet finance covers multiple-unit structures. For plant and non-vehicle assets, equipment finance applies the same structures to different collateral.
Broker or dealer finance
Walk onto a lot and you are usually referred to the dealer’s finance manager. That person is paid by the lender rather than by you, and typically works to one or two preferred lenders. Dealer finance is fast, sometimes same-day, and for an established operator buying new it can be perfectly competitive. It is rarely the widest comparison available.
A broker runs the file across a panel, and the comparison covers more than rate: term, balloon, security and drawdown timing, whether the asset sits inside each lender’s age window, whether the credit team is comfortable with your profile, and what each lender will require to close.
The value is different in each case, and it is worth being precise about which one applies to you.
- Year-one owner-driver: the value is access. Finding a lender whose policy actually fits, when the dealer’s default lender does not.
- Established operator on a non-standard asset: the value is structure. Getting the balloon and term right so the cashflow case holds.
- Multiple assets, refinancing, mixed exposure: the value is sequencing. Which lender to lodge with first, and in what order, because every application is recorded and a run of them makes each subsequent approach harder.
Where a broker is arranging predominantly business-purpose finance, the consumer framework described earlier does not apply to it, and licensed brokers still operate under the conditions of their credit licence. Best Interests Duty applies to credit assistance on regulated consumer credit, and where a broker is also arranging a home loan for you, it applies to that. Two files, two frameworks, same broker.
How long does approval take?
For an established operator with complete documentation, approval can land in 24 to 48 hours. A clean new file with full documentation typically runs two to five business days. Specialist or low-documentation files, year-one owner-drivers, complex assets and anything routed to a specialist non-bank lender typically run five to ten business days. Settlement then takes a few days more once supplier paperwork is in order.
| What slows the file | What speeds it |
|---|---|
| Missing financial statements, the most common cause by a wide margin | Complete documentation lodged at the start rather than in stages |
| Valuation lead times on used assets, since inspector availability varies by location | Pre-approval in place before the asset is identified, where the profile allows it |
| Supplier paperwork: invoice, payout letter, registration documents | Asset selection inside the lender’s window on age and type |
| Body builder delays, since drawdown cannot release until the body is installed | A cashflow case backed by contracts or subcontractor agreements |
| Lender volume spikes, because assessment teams queue | A clean credit file, and no scatter of recent applications behind you |
The fastest approvals we see are established operators on new prime movers with full financials and a clean file, occasionally same-day where everything is pre-positioned. The slowest are specialist body builds for newer operators on used assets, which can run three to four weeks when every element of the file needs verification.
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Frequently Asked
Truck and Transport Finance FAQs
The questions transport operators ask most often before lodging an application.
How does truck finance work in Australia?
Truck finance is usually arranged as a chattel mortgage, a commercial hire purchase or a finance lease. You apply through a commercial lender or a broker, the lender assesses both you and the asset, the funds are drawn down to pay the supplier, and you repay in monthly instalments over a term that commonly runs 2 to 7 years. The structure decides ownership during the term and how depreciation and GST are treated. Tax treatment depends on structure and your circumstances, so confirm it with your accountant.
What is the maximum age of truck I can finance?
Most commercial lenders cap the asset’s age at the end of the loan term rather than at purchase. Common limits sit between 12 and 15 years at end of term for prime movers and rigids, and longer for trailers, where depreciation is slower. Older assets attract higher rates and larger deposits, and sometimes require a specialist lender. The exact cap varies by lender and asset class, and a lender that will fund a 9-year-old prime mover on competitive terms is often not the lender that will fund a 14-year-old one at all.
Can I get truck finance with no deposit?
Often, if you are an established operator with a couple of years of trading history buying a new asset. Owner-drivers in their first year, and borrowers with limited industry experience, typically need 10 to 30 per cent depending on the asset and the lender. Used assets generally require a deposit even for established operators. The requirement is a function of borrower profile and asset risk together, not of either one alone.
What is the difference between truck finance and a chattel mortgage?
They are not alternatives to each other. Truck finance is the general term for any financing arrangement on a commercial vehicle. A chattel mortgage is one specific structure within it, under which you own the asset from day one and the lender registers a security interest over it. The other common structures are commercial hire purchase and finance lease, each with different tax and balance sheet consequences. Which one suits depends on your accounting position and your cashflow priorities.
Can a new owner-driver get truck finance with no trading history?
Usually yes, through specialist lenders. The file typically needs evidence of industry experience, often as a PAYG driver in the same field, plus work contracts or letters of intent, a deposit, and a sensible asset choice. The lender pool is narrower than for established operators and the pricing reflects that, but the pathway exists. A former PAYG driver moving to an ABN can generally access more lenders than a career changer, because most lenders apply an industry test rather than a business-trading test.
Can I finance a prime mover and trailer together?
Some lenders bundle both into a single facility, others require separate applications. Bundling is usually faster and simpler to administer. Separating them can produce better terms on each, because prime movers and trailers are often served by different lender pools with different age caps and term appetites. Worth testing both ways before committing.
What is a balloon payment on a truck loan, and what does it cost?
A balloon is a lump sum due at the end of the term, commonly 20 to 40 per cent of the original asset value, which lowers the monthly payment by leaving part of the principal unamortised. On a $120,000 asset over 5 years at an illustrative 8.00 per cent per annum, a 30 per cent balloon lowers the payment by $489.95 a month and adds $6,603 in interest across the term. If the balloon is then refinanced over a further 3 years at the same rate, total interest across both facilities reaches $37,205 against $25,990 on the straight 5-year loan. That is the trade: cashflow now, more interest later. We publish no interest rates and the figure above is illustrative only.
Can I claim my truck loan on tax?
What you claim depends on the structure. Under a chattel mortgage or commercial hire purchase, the business generally claims depreciation on the asset and the interest portion of the payments. Under a finance lease, the lease payments are generally deductible instead. The principal portion of a loan repayment is never itself a deduction under any structure, which is a common point of confusion. Confirm your position with your accountant or registered tax agent before signing.
Are second-hand truck purchases eligible for the instant asset write-off?
The instant asset write-off applies to both new and second-hand assets. The threshold is $20,000 per asset for businesses with an aggregated turnover under $10 million that apply the simplified depreciation rules, and it has now been made permanent rather than expiring. Most trucks cost well above $20,000, so in practice they go into the small business depreciation pool instead, which depreciates at 15 per cent in the first income year and 30 per cent each year after that. Pool balances under $20,000 at the end of an income year can be written off. The threshold matters less to a truck buyer than the pool rates do. Confirm your eligibility with your accountant.
Does the car limit apply to a truck or a ute?
The car limit applies to passenger vehicles, other than motorcycles and similar, that are designed to carry fewer than 9 passengers and a load of less than one tonne. Payload is the gross vehicle mass on the compliance plate minus the basic kerb weight. A vehicle with a payload of one tonne or more is outside the limit, so its full cost goes into the depreciation calculation. For the 2026 to 2027 income year the car limit is $69,883, and where it applies the maximum GST credit is one eleventh of that, being $6,353. On a vehicle near the one-tonne line, the compliance plate decides whether a large share of the purchase price is ever deductible.
What changed for heavy vehicle mass limits on 1 August 2026?
General mass limits were raised to align with the previous concessional mass limits, an increase of up to one tonne for a vehicle or combination with an allowable gross mass of 55 tonnes or less and up to two tonnes above 55 tonnes. Mass accreditation is no longer required to access concessional mass limits. Euro VI concessions were extended to road trains, the vehicle length limit rose from 19 to 20 metres with B-doubles excluded pending a future amendment, and the tow mass ratio was amended. Loaded mass must still not exceed the manufacturer’s rating. Confirm what applies to your combination with the NHVR or your compliance adviser.
How long does truck finance approval take?
An established operator with complete documentation can see approval in 24 to 48 hours. New applicants and complex assets typically run 2 to 10 business days, and specialist or low-documentation files longer. Documentation is the biggest variable: a complete file moves through the assessment queue once, while an incomplete one rejoins the queue at every iteration.
Can I refinance a truck loan?
Yes. Refinancing is common at the balloon point, or where rates have moved materially, or to consolidate several asset loans into one facility for cashflow simplification. Mechanically it works like refinancing any other facility: the new lender pays out the existing one and you start on new terms. Worth modelling the total interest rather than the monthly payment before committing, particularly where refinancing extends the life of the debt beyond the working life of the asset.
The bottom line
Four decisions carry most of the outcome on a truck deal, and only one of them is the rate.
The structure decides who owns the asset, who depreciates it and how GST lands, and you make it once. The asset decides the lender pool, the deposit and often whether the deal happens at all, because the age cap runs to the end of the term rather than to the day you buy. The balloon buys cashflow at a stated price, and on a $120,000 asset over five years at an illustrative 8.00 per cent that price is $6,603, or $11,215 if the balloon is refinanced rather than cleared. The declaration decides which legal framework the transaction sits in, and it should match how the asset will actually be used.
Two 2026 facts are worth carrying into the conversation. The $20,000 instant asset write-off is now permanent, which for most truck buyers matters less than the pool rates behind it, being 15 per cent in the first income year and 30 per cent after. And from 1 August 2026 general mass limits rose to concessional levels, with mass accreditation no longer the gate. If your unit can legally carry more than it could last year, the servicing evidence built on last year’s figures understates it, and that belongs in the submission rather than in the assessor’s imagination.
Everything above is general. What it is worth on your file depends on the asset you are buying, the trading history behind you and which lender the application is placed with, which is the part worth a conversation.
Joseph Sukkar
Joseph founded Intellect Finance in Penrith in 2005 and has worked in Australian finance for more than 25 years, across residential, commercial and asset lending. Asset finance at Intellect Finance is led by Chantelle, who handles truck, equipment and personal asset applications day to day, with operators across the Western Sydney transport corridor and Australia-wide. Intellect Finance charges clients no fee on any loan type. More about the team.
Sources
National Heavy Vehicle Regulator, Changes to Mass and Dimension Requirements fact sheet, 5 August 2026, for the 1 August 2026 changes: general mass limits raised to align with concessional mass limits by up to one tonne to 55 tonnes and up to two tonnes above, removal of the requirement to hold mass accreditation to access concessional mass limits, extension of Euro VI concessions to road trains, the vehicle length limit rising from 19 to 20 metres with B-doubles excluded pending a future amendment, the amended tow mass ratio, the revised quad-axle limits, and the statement that loaded mass must not exceed the manufacturer’s rating. nhvr.gov.au
National Heavy Vehicle Regulator, What is a heavy vehicle, for the definition of a heavy vehicle under the Heavy Vehicle National Law as one with a gross vehicle mass or aggregate trailer mass of more than 4.5 tonnes. nhvr.gov.au
Australian Taxation Office, Instant asset write-off for eligible businesses, last updated 28 August 2026, for the $20,000 limit, its application to new and second-hand assets, the aggregated turnover test of less than $10 million, the requirement to apply the simplified depreciation rules, the rule that assets at or above the limit must be placed in the small business pool, and the car limit conditions including the fewer-than-9-passengers and under-one-tonne-load test and the payload calculation of gross vehicle mass less basic kerb weight. ato.gov.au
Australian Taxation Office, $20,000 Instant Asset Write-off, new legislation, for the measure now being law, the permanent increase, and the small business pool rates of 15 per cent in the first income year and 30 per cent each income year after, together with the write-off of pool balances under $20,000 at the end of an income year. ato.gov.au
Australian Taxation Office, Car thresholds from 1 July, published 9 June 2026, for the car limit of $69,883 for the 2026 to 2027 income year and the maximum GST credit of $6,353, being one eleventh of the car limit. ato.gov.au
National Credit Code, Schedule 1 to the National Consumer Credit Protection Act 2009, sections 5 and 13, for the purpose test that brings credit within the Code, the definition of predominant purpose, and the effect and limits of a business purpose declaration. Chapter 3 of the Act contains the responsible lending conduct obligations. Set out in full in our business purpose declaration guide. legislation.gov.au
ASIC, Regulatory Guide 273 Mortgage brokers: Best interests duty, for the scope of the duty applying to mortgage brokers in relation to credit assistance on regulated consumer credit from 1 January 2021 under the National Consumer Credit Protection Act 2009. asic.gov.au
Personal Property Securities Act 2009, section 45, and Personal Property Securities Regulations 2010, regulations 1.7 and 2.1, for the rule allowing a buyer to take a prescribed motor vehicle free of a security interest, its search window and exceptions, and the definition of motor vehicle extending to towed wheeled equipment carrying an identifying number. Set out in full in our PPSR guide. legislation.gov.au
Australian Financial Security Authority, Personal Property Securities Register, for the $2 vehicle search and what a search discloses about goods recorded as subject to a security interest. ppsr.gov.au
Important disclosures, general advice warning and licensing
General information only. This article is general information only and does not constitute financial, credit, legal or tax advice. It does not take your personal or business circumstances into account. Before acting on any information here, consider whether it is appropriate to your objectives, financial situation and needs.
Illustrative figures. Intellect Finance publishes no interest rates. The 8.00 per cent per annum used in the balloon comparison is an illustration chosen to make the arithmetic visible, is not a quote, is not an offer, and is not representative of any lender’s pricing. The payments shown are calculated monthly in arrears on a $120,000 amount financed over the stated term and ignore establishment fees, ongoing fees, insurance, GST timing and any deposit. Your own repayments, rate and total cost will differ. Ask for a quote in writing from the lender before relying on any figure.
Tax content. References to GST, depreciation, deductibility, the small business pool, the car limit and the instant asset write-off are general descriptions of how the relevant rules typically apply. Thresholds and rates cited are those published by the ATO and reviewed on 10 September 2026, including the $20,000 instant asset write-off limit for businesses with an aggregated turnover under $10 million applying the simplified depreciation rules, the small business pool rates of 15 per cent in the first income year and 30 per cent thereafter, and the car limit of $69,883 for the 2026 to 2027 income year. Tax treatment depends on your specific structure and circumstances and on current ATO rulings. Confirm your position with your registered tax agent or accountant before acting.
Heavy vehicle regulation. The mass and dimension changes described took effect on 1 August 2026 and are summarised from the National Heavy Vehicle Regulator’s published fact sheet. They are not legal or compliance advice, do not describe every rule that may apply to a particular combination, and do not address jurisdictional variation, route access, permits or notices. Loaded mass must not exceed the manufacturer’s rating regardless of any regulatory limit. Confirm what applies to your vehicle with the NHVR or your compliance adviser. Intellect Finance is a finance broker and does not advise on heavy vehicle compliance.
Regulatory framework. Best Interests Duty applies to mortgage brokers in relation to the credit assistance they provide on regulated consumer credit under the National Consumer Credit Protection Act 2009, and has done since 1 January 2021. Credit provided wholly or predominantly for business purposes is not regulated by the National Credit Code, so the responsible lending obligations in Chapter 3 and Best Interests Duty do not attach to it. Whether particular credit is regulated depends on the facts, including the predominant purpose for which it is provided, and is a question for the lender and, where relevant, your solicitor or accountant, not a matter this page can determine for you. The description of the business purpose declaration is a summary of the statutory provisions and is not a substitute for legal advice on your own document.
Personal Property Securities Register. The description of the take-free rule is a summary of the statutory provisions as reviewed on 10 September 2026, is subject to exceptions not all of which are set out here, and depends on facts specific to each transaction. A PPSR search result is evidence of what was registered at the time of the search and nothing more. If a substantial purchase turns on it, get legal advice rather than relying on this page.
Lender policies vary and change. Deposits, age caps, acceptable documentation, approval timeframes, term limits, balloon appetite and assessment criteria differ between lenders, are subject to each lender’s own assessment, and change without notice. This page names no lenders and publishes no interest rates. No broker can guarantee approval, a particular rate, or a timeframe.
What we charge you. Nothing, on any loan type. No arrangement fee for residential, commercial, corporate, asset, SMSF or personal lending, no fee for complex or specialist lending, and no clawback recovery fee if a facility is discharged early. Lenders pay us a commission on settlement, disclosed to you in writing in our Credit Guide before we provide credit assistance. This statement describes Intellect Finance only, and other brokers’ arrangements are set out in their own Credit Guides.
About the reviews shown. The reviews displayed on this page are genuine reviews published by clients on Intellect Finance’s Google Business Profile, shown live via a third-party reviews widget. They reflect those individuals’ own experiences and are not a promise of any particular outcome.
Other professionals. Tax questions to your accountant or a registered tax agent. Contracts, guarantees, security documents and PPSR questions to your solicitor. Heavy vehicle compliance to the NHVR or a compliance adviser. If you are having difficulty meeting repayments, contact your lender’s hardship team, and free independent help is available from the National Debt Helpline on 1800 007 007.
Intellect Finance Pty Ltd holds Australian Credit Licence 390611 and is a member of the MFAA and AFCA. Lending criteria, fees and terms apply. All applications are subject to lender assessment and approval. Article checked 10 September 2026.
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General information only. Intellect Finance publishes no interest rates. No broker can guarantee approval, a rate, or a timeframe. Tax and compliance questions to your accountant and the NHVR.