Low-Doc Equipment Finance NSW
Equipment finance for contractors without tax returns. ABN + bank statements = fast-tracked approval. Finance excavators, trucks, forklifts $20k-$500k with 85% approval rate.
Fast Track
Processing
85%
Approval Rate
3-4
Documents Required
Important Tax & Financial Disclaimer
General Information Only: The information provided on this page is for general guidance purposes only and should not be considered as professional tax, legal, or financial advice.
Seek Professional Advice: You must seek professional advice from a qualified accountant, tax advisor, or financial planner regarding your individual tax circumstances, strategies, and current regulations before making any financial decisions.
ATO Requirements: For official information about tax deductions, instant asset write-offs, depreciation schedules, and current ATO requirements, always cross-reference with the Australian Taxation Office website:
Tax laws and regulations are subject to change. Always verify current requirements with the ATO and consult with professional advisors before making equipment finance decisions.
Official ATO $20,000 Instant Asset Write-Off
Based on official Australian Taxation Office guidance - current for 2024-26 financial years
$20,000 Instant Asset Write-Off
Official ATO instant asset write-off for eligible equipment with low-documentation finance
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
How It Works
- •Per-asset basis: Write off multiple assets under $20k each
- •Immediate deduction: Claim full business portion in year of purchase
- •GST treatment: Exclude GST if registered, include if not
- •Business use only: Only claim business portion (not private use)
Assets $20,000 or More
If your asset costs $20,000 or more, it goes into the small business simplified depreciation pool:
- • 15% deduction in the first year
- • 30% deduction each subsequent year
- • If pool balance falls below $20,000, write off the entire balance
Important Exclusions & Limits
Passenger vehicles limited to $69,674 for depreciation purposes (excludes motorcycles and disability-modified vehicles)
- • Assets leased out (>50% of time)
- • R&D assets (special rules apply)
- • Capital works & buildings
- • Horticultural plants
Practical Example
Purchase: Computer for $6,800 (80% business use)
Instant Write-Off: $5,440 (80% of $6,800) in the year of purchase
Total cost ($6,800) is below $20,000 threshold ✓
Business can claim $5,440 deduction immediately, not spread 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.
Why Low-Doc Equipment Finance Exists
Traditional equipment finance assumes you have 2 years of tax returns showing consistent profit. But many NSW contractors legitimately structure their affairs to minimize taxable income - salary sacrificing into super, depreciating assets aggressively, claiming every allowable deduction. Your actual business cashflow might be $15k-$25k per month, but your taxable income shows $45k annually.
Low-doc finance solves this by assessing your actual business bank deposits instead of tax returns. If $120k-$180k flows through your business account monthly, that's proof of trading capacity - regardless of what your tax return shows.
Who Needs Low-Doc Finance?
Self-Employed Contractors
Sole traders and partnerships who legitimately minimize taxable income through legal deductions. Your accountant advised heavy depreciation and expense claims = low reported profit, but strong cash flow.
Growing Businesses (Under 2 Years)
You registered ABN 18 months ago, business is booming, but you don't have "2 full years" of tax returns yet. Low-doc assesses based on current trading (6-12 months bank statements) rather than historical returns.
Cash-Heavy Businesses
Concrete slab contractors, residential roofers, small-scale earthmoving - industries where 30-60% of revenue is cash. Your bank statements show regular cash deposits matching job completion. Traditional lenders struggle with this, low-doc lenders understand it.
Urgent Equipment Needs
You won a $500k infrastructure subcontract starting in 3 weeks. You need equipment NOW, not in 4-6 weeks after accountant prepares financials. Fast-tracked low-doc processing lets you start work on time.
Complex Business Structures
You operate via trust or partnership with multiple entities. Preparing consolidated financials takes weeks and costs $3k-$5k in accountant fees. Low-doc uses trust/partnership bank statements directly.
What Lenders Actually Look At
When we submit your low-doc application, the lender focuses on three key metrics:
1. Average Monthly Deposits
They calculate your average monthly business deposits over 3-6 months. For equipment finance, they want to see deposits at least 3-4× the monthly repayment amount.
Example: $150,000 excavator over 60 months at 8.5% = $3,080/month. Lender wants to see average monthly deposits of $9,240-$12,320 (3-4× coverage). If your 6-month average is $14,500, you're approved.
2. Expense-to-Income Ratio
They scan your bank statements for major outflows (other loan repayments, large regular expenses, staff wages). Ideally, expenses should be under 75-80% of deposits, showing healthy profit margin.
Red Flag: $95k monthly deposits but $87k monthly expenses = only 8% margin, too tight.Green Light: $95k deposits, $65k expenses = 32% margin, comfortable approval.
3. Banking Conduct
They check for dishonored direct debits, frequent overdrafts, unpaid fees, gambling transactions (huge red flag), or erratic deposit patterns. Clean banking conduct = higher approval likelihood.
Common Issue: One dishonored Telstra bill (forgot to transfer funds) usually OK if explained. Multiple dishonors + overdrafts = lender sees cashflow stress, likely decline.
Low-Doc Interest Rates: What to Expect
Low-doc rates are 1-2% higher than full-doc, but vary based on deal strength:
| Deal Profile | Typical Rate | Example |
|---|---|---|
| Strong (3+ years ABN, clean credit, 15% deposit) | 8.0-8.5% | Established contractor, regular deposits |
| Standard (2+ years ABN, good credit, 15-20% deposit) | 8.5-9.5% | Most low-doc deals fall here |
| Weaker (1-2 years ABN, minor credit issues, 20% deposit) | 9.5-11% | Newer business or small defaults |
| Near-prime (under 2 years, credit impaired, 25-30% deposit) | 11-14% | Requires specialist lender |
Instant Asset Write-Off Calculator
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* Calculations are estimates based on standard depreciation rates. Consult with a qualified accountant for personalized advice. Interest rate assumed at 7.5% p.a. for illustration purposes.
Get Fast-Tracked Low-Doc Approval
Ding Financial's trade finance specialists have an 85% approval rate for low-doc deals. Just ABN + bank statements needed.
Get Low-Doc Approval Now →Recent Low-Doc Equipment Finance Deals
Western Sydney Excavation Expansion
Sole trader contractor with 4 years operating needed second excavator for WestConnex subcontract. Low-doc approval in 32 hours based on strong bank statements and confirmed contract.
$165,000
$54,450
Hunter Valley Truck Upgrade
Owner-operator with 2.5 years trading history replacing aging truck. No tax returns available due to complex partnership structure. Approved via low-doc using partnership bank statements + BAS.
$185,000
$61,050
Illawarra Concreting Fleet
Cash-heavy concrete business (mainly residential slabs) financed mixer, pump, and vibrator equipment. Approved despite 60% of revenue being cash deposits due to consistent deposit pattern.
$125,000
$41,250
These low-doc projects were approved by Ding's partner funding network
Low-Doc Application Checklist
Required Documents
- ✓ABN certificate (12+ months registration ideal)
- ✓3-6 months business bank statements (PDF format)
- ✓BAS statements (last 2-4 quarters if GST-registered)
- ✓Driver license or passport (photo ID)
- ✓Equipment details (VIN, make, model, year, hours)
Helpful But Not Required
- ○Accountant letter confirming business trading
- ○Trade-in equipment valuation (if applicable)
- ○Confirmed contracts or work pipeline evidence
- ○Previous year tax return (if available)
- ○GST registration certificate
Low-Doc Equipment Finance FAQs
Your questions about fast-track equipment finance without tax returns
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