Construction Equipment Finance Queensland
Finance your excavators, loaders, cranes, and site equipment with flexible payment plans designed for Queensland builders and contractors. Get the gear you need to win more work, with fast approval and instant asset write-off benefits up to $20,000.
Important Disclaimer
This information is general in nature and does not constitute financial, legal, or tax advice. Equipment finance is provided by third-party lenders and is subject to their lending criteria, approval, and terms and conditions. Ding Financial (ACL 222640) acts as a broker and does not guarantee loan approval or specific terms. Tax benefits, including instant asset write-off provisions, are subject to eligibility criteria and Australian Taxation Office rules, which may change. Always consult with a qualified accountant or tax advisor regarding your specific circumstances.
Written & Reviewed by Ding Financial Team (ACL 222640)
Last Updated: 8 December 2025
$20,000 Instant Asset Write-Off
Official ATO instant asset write-off for eligible construction equipment
Eligibility Requirements
- •Business aggregated turnover less than $10 million
- •Asset cost less than $20,000 (ex GST if registered)
- •First used or installed ready for use 1 July 2024 – 30 June 2025 (law) | 1 July 2025 – 30 June 2026 (announced)*
- •Using simplified depreciation rules
- •Both new and second-hand assets qualify
Key Exclusions
- •Business use only – private use portion not deductible
- •Per-asset basis – must meet threshold individually
- •Car Limit (2024-25): $69,674 cap for passenger vehicles
- •Record keeping required for ATO compliance
What happens if your construction equipment costs more than $20,000?
Assets costing $20,000 or more must be placed into your small business pool and depreciated:
- •15% depreciation in first income year
- •30% depreciation each subsequent year
- •If pool balance drops below $20,000, you can write off the entire balance
GST Treatment
If GST Registered:
Exclude GST from asset cost when calculating depreciation (if you can claim full GST credit)
If Not GST Registered:
Include GST in asset cost when calculating depreciation
Example: Business Use Calculation
Scenario: Excavator costs $18,000 (ex GST), used 80% for business, 20% private use
Calculation:
Total cost ($18,000) is below $20,000 threshold ✓
Claimable deduction = $18,000 × 80% = $14,400
Private use ($3,600) is not deductible ✗
Example: Multiple Assets Strategy
Smart Tax Strategy: Purchase multiple sub-$20,000 items instead of one large asset
Example: Instead of one $80,000 equipment package, split into:
• Component A: $18,500 → Instant write-off ✓
• Component B: $17,200 → Instant write-off ✓
• Component C: $15,800 → Instant write-off ✓
• Component D: $8,900 → Instant write-off ✓
Remaining parts ($19,600) → Small business pool depreciation
This allows you to claim $60,400 immediately instead of depreciating the full $80,000 over multiple years.
* Legislative Status: The $20,000 instant asset write-off for 2024-25 (1 July 2024 to 30 June 2025) is confirmed law. The extension for 2025-26 (1 July 2025 to 30 June 2026) has been announced by the government but is not yet legislated. While the government has committed to this extension, it requires parliamentary passage before becoming law.
Important: This information is based on ATO guidance current as of December 2024. Tax laws change regularly. Consult a registered tax agent or accountant to ensure your specific situation qualifies for the instant asset write-off. Record keeping requirements apply.
Calculate Your Tax Savings
Instant Asset Write-Off Calculator
Calculate your tax savings on construction equipment
Maximum $20,000 instant write-off applies
Important: This calculator provides general estimates only. The instant asset write-off is subject to eligibility criteria and may change. Always consult with your accountant or tax advisor for advice specific to your business circumstances. Results assume a 25% company tax rate.
Construction Equipment We Finance
Excavators & Earthmoving
Mini excavators (1-6 ton), midi excavators (6-15 ton), and large excavators (15+ ton) from brands like Caterpillar, Komatsu, Hitachi, Kubota, and Yanmar. Essential for site cuts, trenching, footings, drainage, and general earthworks on Queensland construction sites from residential to commercial and civil projects.
Typical Price Range: $25,000 - $500,000+
Loaders & Material Handling
Wheel loaders, skid steer loaders, tracked loaders, backhoes, and telehandlers from JCB, Bobcat, Case, John Deere, and Volvo. Critical for material movement, site preparation, loading trucks, and multi-purpose construction tasks. Popular with builders, civil contractors, and landscaping businesses across Brisbane, Gold Coast, and regional Queensland.
Typical Price Range: $30,000 - $350,000
Cranes & Lifting Equipment
Mobile cranes, tower cranes, crawler cranes, and all-terrain cranes from Tadano, Grove, Liebherr, and Manitowoc. Essential for high-rise construction, industrial projects, infrastructure work, and heavy lifting operations. Particularly in demand for Southeast Queensland's booming construction sector including Brisbane CBD developments.
Typical Price Range: $150,000 - $2,000,000+
Compaction & Concrete Equipment
Plate compactors, rollers, rammers, concrete saws, power trowels, screeds, vibrators, and pumps from Wacker Neuson, Ammann, Weber, and Dynapac. Vital for road construction, car parks, driveways, slabs, and civil works. High demand for infrastructure projects across Ipswich, Logan, Sunshine Coast, and Toowoomba regions.
Typical Price Range: $5,000 - $150,000
Site Dumpers & Transport
Site dumpers, articulated dump trucks, rigid dump trucks, and tracked carriers from Thwaites, Terex, Bell, and Morooka. Ideal for moving materials across construction sites, particularly on larger subdivisions, civil projects, and mining support operations. Popular in Southeast Queensland's residential boom and Bowen Basin mining projects.
Typical Price Range: $20,000 - $800,000
Queensland Construction Projects We've Financed
Brisbane CBD High-Rise Development
Brisbane CBD | Commercial Builder
$1.8M
Finance Package
A mid-sized commercial builder secured $1.8 million in equipment finance to support a 24-storey mixed-use development in Brisbane's CBD. The package included two tower cranes, four telehandlers, concrete pumping equipment, and associated lifting gear. The finance structure matched project cashflow with staged equipment delivery, allowing the builder to service debt from progress payments. The project employed over 200 workers and represented a significant expansion for the business.
Logan Residential Subdivision
Logan | Civil Contractor
$420K
Equipment Fleet
A Logan-based civil contractor financed a complete earthmoving fleet for a 180-lot residential subdivision. The package included three excavators (13-ton, 8-ton, and 5-ton), two 12-tonne articulated dump trucks, a wheel loader, and compaction equipment. The contractor structured finance over five years with seasonal payment flexibility to accommodate Queensland's wet season variations. The equipment enabled them to self-perform bulk earthworks rather than subcontracting, improving project margins significantly.
Ipswich Industrial Estate
Ipswich | Building Company
$685K
Crane Package
An Ipswich building company acquired a 50-tonne mobile crane and 25-tonne franna crane package to service industrial warehouse construction in the growing Ipswich industrial corridor. The finance included GPS fleet management, comprehensive insurance, and maintenance agreements. The cranes enabled the business to tender for larger industrial projects previously out of reach, doubling their annual revenue within 18 months. Tax benefits from depreciation and instant asset write-off (on accessories) improved overall project profitability.
Sunshine Coast Renovation Contractor
Sunshine Coast | Renovation Specialist
$95K
Equipment Package
A Sunshine Coast renovation contractor financed a fleet of compact construction equipment including a 1.7-tonne mini excavator, skid steer loader, tipper trailer, and various concrete and compaction tools. The equipment allowed them to offer full-service renovations including site cuts, pool excavations, driveway replacements, and landscaping without hiring equipment or subcontracting. Finance was structured over four years with low monthly repayments, preserving working capital for materials and wages. The instant asset write-off on the mini excavator provided $4,750 in immediate tax savings.
Mackay Mining Services Contractor
Mackay | Mining Support
$1.2M
Heavy Equipment
A Mackay-based contractor providing civil services to Bowen Basin mining operations financed heavy construction equipment including two large excavators (30-tonne and 45-tonne), a wheeled dozer, water truck, and service vehicles. The equipment supports long-term contracts for haul road maintenance, drainage construction, and site preparation at multiple mine sites. Finance was structured with quarterly payments aligned to contract milestones, reducing cashflow pressure during mobilization periods. The business has since expanded into Galilee Basin projects.
Gold Coast Highway Upgrade
Gold Coast | Civil Infrastructure
$950K
Road Equipment
A civil infrastructure contractor secured finance for specialized road construction equipment to support a major Gold Coast highway widening project. The package included asphalt pavers, rollers, milling machines, and line marking equipment. The contractor structured finance over seven years to match the project duration plus subsequent maintenance contracts. Equipment was delivered progressively as project stages advanced. The business leveraged this equipment to win additional road maintenance contracts with the Queensland Department of Transport and Main Roads.
Toowoomba Drainage Specialist
Toowoomba | Drainage Contractor
$175K
Specialist Equipment
A Toowoomba drainage contractor financed specialized equipment including a vacuum excavator, pipe layers, laser-guided trenchers, and CCTV inspection equipment. This allowed expansion into complex underground drainage and sewer projects for councils, developers, and commercial clients across the Darling Downs region. The contractor included extended warranties and maintenance plans in the finance package, ensuring equipment reliability for critical infrastructure work. Revenue increased 60% in the first year with the new equipment enabling higher-margin specialist services.
Cairns Resort Development
Cairns | Commercial Builder
$540K
Site Equipment
A Cairns commercial builder secured equipment finance for a luxury resort development in Far North Queensland. The package included tower crane, concrete batching plant, formwork systems, and specialized tropical construction equipment. Finance was structured to accommodate the extended construction timeline common in Far North Queensland due to wet season delays. The builder negotiated payment holidays during cyclone season when work typically slows. The successful project delivery has positioned the business for additional tourism infrastructure developments in the region.
Construction Equipment Finance: Traditional Banks vs Ding Financial
| Factor | Traditional Banks | Ding Financial |
|---|---|---|
| Approval Time | 1-4 weeks, extensive documentation required | 24-48 hours for most applications, streamlined process |
| Flexibility | Rigid terms, limited customization options | Flexible terms, seasonal payment options, customized structures |
| Equipment Types | Prefer new equipment, major brands only | New and quality used, wide brand acceptance including imports |
| Industry Knowledge | Generalist approach, limited construction sector experience | Specialized construction finance expertise, understand project cashflows |
| Deposit Requirements | Typically 30-40% for SME construction businesses | From 10% depending on equipment and business profile |
| New Businesses | Generally require 2+ years trading history | Consider new businesses with industry experience and strong pipeline |
Cashflow Strategies for Construction Equipment Finance
1. Match Finance Terms to Equipment Life
Structure your construction equipment finance over a term that reflects the equipment's productive life and your intended use. Heavy-duty excavators and loaders working on multi-year projects might suit 5-7 year terms, spreading costs and reducing monthly repayments. Light construction equipment or technology-dependent items (like GPS-equipped machinery) may warrant shorter 2-4 year terms, allowing earlier upgrades as technology advances. Matching terms to equipment life prevents you from paying for outdated equipment, particularly important for rapidly evolving construction technology.
2. Use Seasonal Payment Structures
Queensland construction businesses face seasonal cashflow variations, particularly during wet season when site work slows or stops. Negotiate payment structures that acknowledge these patterns—higher repayments during dry, busy months (April-November) and reduced repayments during wet season (December-March). Some lenders offer quarterly payments aligned with major project milestones rather than monthly payments. This smooths cashflow and reduces pressure during traditionally slow periods. Seasonal structures are particularly valuable for civil contractors and earthmoving operations heavily impacted by weather.
3. Bundle Equipment and Attachments
Rather than financing your excavator or loader separately from buckets, rippers, grapples, quick hitches, and attachments, bundle everything into a single finance package. This provides a complete ready-to-work solution with one monthly payment. Bundling often secures better overall rates than financing items separately, as the total amount attracts more competitive pricing. It also simplifies administration—one contract, one payment, one tax deduction. Consider including GPS systems, telematics, and technology upgrades in the bundle for a fully optimized fleet from day one.
4. Leverage Tax Benefits Strategically
Time your equipment acquisition to maximize tax benefits. If your business is having a particularly profitable year, purchasing equipment before June 30 allows you to claim instant asset write-off or depreciation in the current financial year, reducing that year's tax liability. The tax savings can effectively fund your first several finance payments. For equipment over $20,000, consider whether to purchase one high-value item or several smaller items to maximize instant write-off benefits. Discuss timing with your accountant to optimize your overall tax position across multiple financial years.
5. Negotiate Residual Values
Consider finance structures with residual values (balloon payments) at the end of the term. A 20-30% residual significantly reduces monthly repayments, improving cashflow during the finance period. At term end, you can pay the residual, refinance it, trade the equipment toward an upgrade, or sell the equipment and settle the residual with proceeds. This strategy works well for businesses expecting revenue growth, as the larger final payment becomes more manageable with increased income. Be realistic about equipment values—inflated residuals may not align with actual resale values at term end.
6. Include Maintenance and Insurance in Finance
Incorporate extended warranties, maintenance plans, and comprehensive insurance into your equipment finance package rather than paying separately. This converts lumpy, unpredictable maintenance expenses into fixed monthly costs included in your finance repayment. You avoid surprise repair bills that can devastate cashflow. Comprehensive insurance included in finance protects against equipment loss, theft, or damage without separate premium payments. For construction businesses with thin margins, this predictability is invaluable. The total monthly payment is higher, but overall risk and financial volatility are dramatically reduced.
7. Plan Equipment Acquisition in Stages
Rather than financing your entire equipment fleet simultaneously, stage acquisitions over 12-24 months as your business grows and proves capacity to service debt. Start with core essential equipment (excavator, loader), then add specialized or supporting equipment (compaction, concrete equipment, attachments) as revenue increases. Staged acquisition demonstrates financial discipline to lenders, potentially improving terms on subsequent finance applications. It also allows you to observe equipment performance and adjust future purchases based on real-world experience. This approach reduces risk and prevents over-capitalizing before your business can fully utilize equipment.
Expert Advice: What Queensland Construction Businesses Need to Know
1. Buy Quality Used Equipment When Starting Out
New construction contractors often over-capitalize by purchasing brand-new equipment immediately. A well-maintained 3-5 year old excavator or loader from a reputable dealer can deliver 80-90% of the productivity of a new machine at 50-60% of the cost. Lower initial investment means lower finance payments, preserving cashflow during your critical early growth phase. Once your business is established with consistent revenue, upgrade to new equipment with modern technology and lower operating costs. Many successful Queensland contractors started with quality used equipment and built their fleet over time.
Reality Check: A brand-new 13-tonne excavator might cost $180,000, requiring $800-1,000+ monthly repayments. A quality used equivalent might cost $95,000 with $400-500 monthly repayments—the difference can make or break a new business.
2. Don't Confuse Revenue Growth with Profitability
Winning a large project or experiencing rapid revenue growth can tempt businesses to immediately finance significant equipment. But revenue growth without profitability is dangerous. Ensure your gross margins support additional equipment finance before committing. A $500,000 project might look impressive, but if margins are 8-10% and equipment costs consume most of that, you're working for breakeven. Analyze whether financed equipment genuinely improves your margins (by bringing work in-house, reducing hire costs, or enabling higher-value services) or simply adds to overheads without improving profitability.
Key Metric: Calculate your debt service coverage ratio (DSCR). You want operating income to be at least 1.25-1.5 times your total debt repayments including new equipment finance. Below 1.25, you're at risk during slow periods.
3. Build Relationships with Multiple Suppliers and Lenders
Don't limit yourself to a single equipment supplier or finance provider. Develop relationships with 2-3 reputable equipment dealers and work with a broker who accesses multiple lenders. This competition improves pricing, terms, and service. When you need equipment urgently for a project, having established relationships means faster approvals and delivery. Dealers are more flexible with loyal customers, potentially offering better trade-in values or priority access to limited-availability equipment. Similarly, lenders reward repeat customers with better rates and streamlined applications. Relationship building is investment in your business's long-term flexibility and negotiating power.
Pro Tip: Attend industry expos like Conexpo Australia or local dealer open days to network with suppliers, compare equipment, and learn about upcoming technology and finance promotions.
4. Understand Total Cost of Ownership, Not Just Purchase Price
The lowest purchase price or finance rate doesn't always represent the best deal. Calculate total cost of ownership including fuel consumption, maintenance, parts availability, resale value, and downtime. A $20,000 cheaper excavator that consumes 15% more fuel, has limited parts availability in Queensland, and experiences frequent breakdowns will cost you far more over its life than a reputable brand with strong local support. Similarly, equipment with poor resale value leaves you with higher residual payments or lower trade-in value at term end. Focus on lifecycle costs and productivity, not just initial outlay.
Example: A premium Japanese excavator might cost $15,000 more than a budget import, but lower fuel consumption ($3,000/year), cheaper maintenance ($2,000/year), and 20% better resale value make it significantly cheaper over a 5-year ownership period.
5. Always Have an Exit Strategy for Financed Equipment
Before signing equipment finance, understand how you'll exit if circumstances change. What's the equipment's resale market? Can you trade it? Will the lender allow early payout? What are the break costs? Queensland's construction market is cyclical—booms don't last forever. If work slows, you need options. Equipment with strong resale value (major brands, popular models, well-maintained) provides flexibility. Generic or specialized equipment can be difficult to sell quickly. Some finance agreements lock you in with severe penalties for early exit. Discuss exit provisions with your broker before committing, especially for longer-term or high-value equipment finance.
Risk Management: Maintain at least 3-6 months of operating expenses (including equipment repayments) in reserve. This buffer lets you manage through slow periods without desperate equipment sales at unfavorable prices.
Frequently Asked Questions: Construction Equipment Finance Queensland
1What construction equipment can I finance in Queensland?
You can finance virtually any construction equipment including excavators, wheel loaders, skid steers, backhoes, telehandlers, cranes, compactors, concrete equipment, site dumpers, and attachments. Both new and quality used equipment qualify. Finance is available for equipment from major brands like Caterpillar, Komatsu, Hitachi, Volvo, JCB, Kubota, and Bobcat.
2How quickly can I get construction equipment finance approved?
Most applications receive a decision within 24-48 business hours. Simple applications with strong financials can be approved same-day. Once approved, settlements typically occur within 3-5 business days, allowing you to acquire equipment quickly to meet project deadlines or capitalize on opportunities.
3What's the minimum and maximum I can borrow for construction equipment?
Construction equipment finance typically starts from $10,000 and extends to $5 million or more for larger civil contractors and earthmoving operations. The amount depends on your business financials, equipment value, and project pipeline. Larger amounts may require additional documentation and security.
4Can I claim the instant asset write-off on financed construction equipment?
Yes, the instant asset write-off applies to financed equipment. For eligible businesses, you can immediately deduct up to $20,000 per asset. The write-off applies when the equipment is first used or installed ready for use, even if you're making monthly payments. This means you get the tax benefit upfront while spreading the cost over time.
5What deposit do I need for construction equipment finance?
Deposits typically range from 10-30% depending on equipment type, age, and your business profile. New equipment often qualifies for lower deposits (10-20%), while used equipment may require 20-30%. Strong financials and established businesses may access low-deposit or no-deposit options. Some lenders offer deals with deposit-waiver promotions.
6Can I finance attachments and accessories with my construction equipment?
Yes, attachments, buckets, rippers, grapples, quick hitches, GPS systems, and other accessories can be included in your finance package. This provides a complete ready-to-work solution without large upfront costs. Bundling attachments often results in better overall rates than financing them separately.
7What if my construction business is new or has limited trading history?
New businesses can still access construction equipment finance. Lenders consider your business plan, industry experience, contract pipeline, and personal financial position. Director guarantees and higher deposits may apply. If you have relevant industry experience and a solid project pipeline, approval is achievable even in your first year of operation.
8Can I upgrade my construction equipment during the finance term?
Yes, many finance agreements allow equipment upgrades. You can trade in your existing financed equipment toward newer models, rolling any remaining balance into the new finance agreement. This keeps your fleet modern and efficient without waiting for the original term to end. Discuss upgrade options with your broker when arranging initial finance.
9What happens if my construction equipment breaks down or needs major repairs?
Your finance repayments continue regardless of equipment condition. This is why many contractors include extended warranties or maintenance plans in their finance package. Consider comprehensive insurance covering breakdown, mechanical failure, and loss of earnings. Some lenders offer payment holidays or restructuring options if genuine hardship occurs.
10Are there tax benefits beyond the instant asset write-off for construction equipment?
Yes, several tax strategies apply. Finance repayments (interest portion) are tax-deductible, reducing your taxable income. Depreciation on equipment over $20,000 provides ongoing deductions. GST on equipment purchases can be claimed back if registered for GST. Lease payments are fully deductible as operating expenses. Consult your accountant to structure finance for maximum tax efficiency.
11Can I finance construction equipment if I already have existing business debt?
Yes, existing debt doesn't automatically disqualify you. Lenders assess your overall debt servicing ability, cashflow, and equity position. If your business demonstrates strong revenue and manageable existing commitments, additional equipment finance is achievable. Some brokers specialize in helping businesses consolidate existing debts with new equipment finance for better overall cashflow.
12What documentation do I need for construction equipment finance in Queensland?
Typically you'll need recent business financial statements or tax returns (1-2 years), recent BAS statements, bank statements (3-6 months), details of the equipment (quote, specifications, serial number), and identification documents. Newer businesses may need a business plan and evidence of contracts or project pipeline. Pre-approval can often be obtained with minimal documentation before final approval.
Ready to Finance Your Construction Equipment?
Join 150+ Queensland construction businesses who've financed their excavators, loaders, cranes, and site equipment through Ding Financial. Fast approval, flexible terms, and expert support from application to settlement.
Ding Financial (ACL 222640) - Licensed equipment finance broker serving Queensland construction industry