Boom Lift Finance in Australia: How It Works and Your Options
Understand the major boom lift finance options available in Australia, how each structure works, eligibility requirements, and the tax implications to consider.
Enquire About HireBoom lifts are indispensable on construction sites, maintenance projects, and industrial worksites across Australia, but they come with a substantial price tag. A small electric model starts at around $30,000, while a large diesel telescopic boom lift can cost $200,000 or more. For most small and medium businesses, that kind of capital outlay simply isn’t practical.
The good news is that you don’t need to buy a boom lift outright to put one to work. Yes, you can finance a boom lift in Australia. Several finance products are available to businesses and sole traders, including chattel mortgage, finance lease, operating lease, and hire purchase, each with different ownership, tax, and repayment structures that suit different business situations.
What Is Boom Lift Finance?
Boom lift finance is a form of commercial asset finance that allows a business or sole trader to acquire a boom lift by spreading the cost over a set repayment period, rather than paying the full purchase price upfront. Instead of drawing on working capital or business savings, the equipment itself typically serves as security for the loan or lease arrangement.
Boom lift finance is not a personal loan. It is a commercial lending product governed by Australian business finance frameworks, and it is available through banks, non-bank lenders, equipment finance specialists, and finance brokers. Both new and used boom lifts are generally eligible, and most lenders offer a range of structures, chattel mortgage, finance lease, operating lease, and hire purchase, to match different accounting, tax, and ownership preferences.
What Types of Boom Lifts Can Be Financed?
In Australia, most commercial lenders will finance a wide range of boom lift types, including:
Articulating Boom Lifts
Ideal for navigating obstacles and accessing awkward angles.
Telescopic (Straight) Boom Lifts
Suited for maximum horizontal reach on open sites.
Electric Boom Lifts
Lower operating costs, preferred for indoor and emissions-sensitive environments.
Diesel Boom Lifts
Higher power output for outdoor and rough-terrain applications.
Boom Lift Finance Options in Australia
There are four primary finance structures available for boom lifts in Australia. Each has distinct implications for ownership, tax treatment, and cash flow, understanding the differences is essential before you apply.
Equipment Rental vs. Finance
Equipment Rental
Rental provides short-term access to a boom lift with no path to ownership, the equipment goes back to the hire company when the job is done.
Equipment Finance
Finance, by contrast, is structured to help your business acquire the asset over time.
It is worth clarifying that equipment rental is fundamentally different from equipment finance. Rental provides short-term access to a boom lift with no path to ownership, the equipment goes back to the hire company when the job is done. Finance, by contrast, is structured to help your business acquire the asset over time.
Rental makes sense for one-off projects or when equipment requirements are unpredictable. If a boom lift will be in regular use in your business, financing to own (or lease long-term) is almost always more cost-effective.
Boom Lift Finance Comparison Table
| Finance Type | Who Owns the Asset? | Tax Benefit | GST Treatment | Ownership at End? | Best For |
|---|---|---|---|---|---|
| Chattel Mortgage | Borrower (from day 1) | Interest + depreciation deductible | Claim full GST upfront | Yes | GST-registered businesses on accruals |
| Finance Lease | Lender | Lease payments fully deductible | GST on each repayment | Optional (residual payment) | Businesses wanting flexibility or off-balance-sheet treatment |
| Operating Lease | Lender | Lease payments fully deductible | GST on each repayment | No | Fleet turnover, lowest repayments |
| Hire Purchase | Transfers at final payment | Interest + depreciation deductible | Claim full GST upfront | Yes | Path-to-ownership operators |
How Does Boom Lift Finance Work?
The process of financing a boom lift in Australia is straightforward for most business applicants. Here is how it typically works from start to settlement:
Determine your equipment needs. Identify the type of boom lift you require, articulating or telescopic, electric or diesel, new or used, and get a purchase price from a dealer or vendor. This confirms the finance amount you need.
Choose a finance structure. Based on your accounting basis, GST registration, and preference for ownership, select the product that suits your situation, chattel mortgage, finance lease, operating lease, or hire purchase.
Apply with a lender or broker. Submit your application with supporting documentation, including your ABN, tax returns or BAS statements, business bank statements, identification, and equipment details (make, model, year, and price).
Credit assessment. The lender reviews your business financials, credit history (both business and personal for directors), and the nature of the asset. Straightforward applications from established businesses are assessed quickly.
Receive finance approval. In most cases, approval for a standard equipment finance application is issued within 24–72 hours. More complex applications or larger loan amounts may take longer.
Settlement. Once approved and documentation is executed, the lender pays the dealer or seller directly on your behalf. You take possession of the boom lift and it goes straight to work.
Repayments begin. Monthly repayments commence as agreed. The term, repayment amount, and any balloon payment are fixed at the outset, so you know exactly what you’re paying throughout the life of the agreement.
Is Boom Lift Finance Better Than Buying Outright?
For most business operators, financing a boom lift is more practical than buying outright, but the right answer depends on your business’s cash position and financial goals.
Advantages of financing:
- Preserves working capital for wages, materials, and operational expenses
- Provides immediate access to the equipment without a large capital outlay
- Repayments can be structured to align with the revenue the equipment generates
- Offers meaningful tax benefits depending on the structure chosen
- Enables access to newer, safer equipment sooner, supporting Work Health and Safety (WHS) compliance obligations
Advantages of buying outright:
- No interest costs over the life of the loan
- Full, unencumbered ownership from day one
- Simpler administration with no lender obligations
As a general rule, if a boom lift will generate consistent revenue for your business, financing is the smarter commercial decision. The equipment effectively pays for itself through the income it generates, while repayments are structured and tax-effective. Deploying $150,000 of working capital into a single asset when finance is available at competitive rates is rarely the most efficient use of business funds.
Eligibility Requirements for Boom Lift Finance in Australia
In Australia, eligibility for boom lift finance typically requires the following:
Active ABN: Most lenders require a minimum of 12–24 months of trading history under your ABN. Some specialist lenders offer low-doc or no-doc finance options for businesses with as little as 6 months of trading history.
Satisfactory credit history: Lenders assess both the business credit profile and the personal credit history of directors or the sole trader.
Asset details: Make, model, year of manufacture, and the purchase price or invoice from the seller.
Financial documentation: For standard applications, this typically includes two years of tax returns, recent BAS statements, and three to six months of business bank statements. Low-doc applications may require only a signed declaration of income and an accountant’s letter.
GST registration: Required if you intend to claim GST input tax credits upfront under a chattel mortgage or hire purchase arrangement.
Sole traders are eligible to apply. If you have a relatively new business or limited financial history, speaking with a finance broker who has access to a broad panel of lenders, including those with more flexible low-doc criteria, is strongly recommended.
Tax Benefits of Boom Lift Finance in Australia
The tax treatment of boom lift finance depends on the finance structure you choose. Here is a plain-language summary:
Chattel Mortgage and Hire Purchase:
- The interest component of your repayments is tax deductible
- You can claim depreciation on the asset each financial year under ATO depreciation rules
- GST-registered businesses on accruals accounting can claim the full GST on the purchase price in their next BAS lodgement
Finance Lease and Operating Lease:
- Lease repayments are generally fully deductible as a business operating expense
- GST is claimed on each lease repayment rather than as a lump sum upfront
Need a Boom Lift in Brisbane?
If hiring is the better fit for your project, speak with the BHS team about the right boom lift, availability, and hire options.
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