Quick Answer
Harvester finance in Australia enables farmers and agricultural businesses to acquire essential harvesting machinery through various loan structures like chattel mortgages, commercial hire purchase, or equipment loans. In 2026, indicative interest rates typically range from 7-12% p.a. (indicative only), influenced by business age, financial strength, and the specific asset. Loan terms often extend from 1-7 years, with options for balloon payments to reduce monthly repayments. Major banks (CBA, NAB, Westpac) and specialist agricultural lenders provide these solutions, often accessed efficiently via comparison platforms like Loan Phone. Eligibility generally requires a minimum 12-24 months trading history for traditional lenders, though specialist options exist for newer businesses. Potential tax benefits, such as depreciation and GST input tax credits, are available (seek independent tax advice).
| Business/Borrower Profile | Indicative Rate | Typical Term | Common Harvester Types |
|---|---|---|---|
| Established (2+ years, strong) | 6-9% p.a. | 3-7 years | Combine, Grape, Cotton Harvesters |
| Standard (1-2 years) | 9-12% p.a. | 2-5 years | General Crop Harvesters |
| Developing/Newer | 12-14%+ p.a. | 1-3 years | Smaller Harvesters, Used Equipment |
Rates are indicative examples only. Actual rates depend on individual circumstances and lender assessment.
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By the Loan Phone team · Reviewed by Anthony Moncada, M.App.Fin, Cert IV Finance & Mortgage Broking, Director
Navigating Harvester Finance in Australia
For Australian farmers, acquiring a new or used harvester is a significant investment, often essential for operational efficiency and yield maximisation. Whether it’s a combine harvester for grains, a grape harvester for vineyards, or a cotton picker, accessing appropriate harvester finance is crucial. The right finance solution can preserve working capital, offer tax advantages, and align repayments with seasonal cash flows.
In 2026, the Australian agricultural finance landscape offers a range of options from major banks to specialist lenders, each with varying rates, terms, and eligibility criteria. Understanding these options is key to making an informed decision for your farm. Modern comparison platforms streamline this process, connecting you with multiple lenders to find tailored solutions for your agricultural equipment finance needs.
Popular Harvester Finance Options
When financing a harvester, Australian businesses typically choose from a few core finance structures, each with distinct benefits and implications.
Chattel Mortgage
A chattel mortgage is a popular choice for harvester finance as it allows the business to own the equipment from the outset, with the lender taking a mortgage over the asset as security. This structure is often favoured for its potential tax benefits.
- Ownership: Immediate ownership of the harvester.
- GST: Full GST input tax credits can typically be claimed upfront (if registered for GST).
- Depreciation: The harvester can be depreciated over its effective life, subject to ATO guidelines.
- Flexibility: Options for balloon payments to reduce monthly repayments.
Learn more about this popular structure in our comprehensive Chattel Mortgage Guide.
Commercial Hire Purchase (CHP)
Under a Commercial Hire Purchase agreement, the lender purchases the harvester on behalf of your business, and you hire it over a set term. At the end of the term, once all payments are made, ownership transfers to your business.
- Ownership: Transfers at the end of the loan term.
- GST: GST on the purchase price is typically claimed over the life of the loan.
- Tax Deductions: Interest and depreciation are usually tax-deductible.
Finance Lease
A finance lease allows your business to use the harvester for an agreed period, making regular lease payments. At the end of the lease, you typically have options to purchase the equipment for its residual value, re-lease it, or return it.
- Ownership: The lender retains ownership throughout the lease.
- Tax Deductions: Lease payments are usually tax-deductible.
- Flexibility: Offers lower monthly payments as you’re only paying for the use of the asset.
For a broader understanding of equipment acquisition, explore our Asset Finance Australia guide.
Harvester Finance Eligibility Criteria
Eligibility for harvester finance can vary significantly between lenders, but general guidelines apply in Australia for 2026.
General Requirements:
- ABN: A valid Australian Business Number (ABN).
- Trading History: Most traditional lenders require a minimum of 12-24 months trading history. Newer businesses or startups may need to explore specialist lenders or provide a higher deposit.
- Financial Health: Lenders assess your business’s financial statements, demonstrating repayment capacity.
- Credit History: A satisfactory business and personal credit history is generally required.
- Asset Use: The harvester must be primarily for business use (typically 51% or more).
Eligibility criteria are guidelines only. If you’re unsure about your specific situation, speaking with a specialist broker can help navigate options, especially for complex scenarios.
Tax Benefits of Financing Your Harvester
Important: Tax benefits depend entirely on your individual business structure, circumstances, and how you use the asset. The information below is general in nature only. Always seek independent advice from a qualified tax professional or accountant before making any financing decisions.
Financing a harvester can offer several tax advantages for Australian businesses:
- Depreciation: Harvesters, as income-producing assets, are typically depreciable over their effective life (e.g., 5-8 years for commercial machinery, depending on usage intensity). This allows your business to claim a deduction for the decline in value each year.
- GST Input Tax Credits: For structures like a chattel mortgage, businesses registered for GST can often claim the full GST component of the purchase price as an input tax credit in their next Business Activity Statement (BAS).
- Interest Deductions: The interest component of loan repayments is generally tax-deductible.
Example: Financing a Combine Harvester
Example: Financing a Combine Harvester
| Purchase Price (incl. GST) | $380,000 |
| Deposit | $0 |
| Amount Financed | $380,000 |
| Interest Rate | 8.25% p.a. |
| Term | 5 years (60 months) |
| Balloon Payment | $76,000 (20% of financed amount) |
| Indicative Monthly Repayment | ~$6,550 |
| Total Cost Over 5 Years (excluding balloon) | ~$393,000 |
This example is for illustrative purposes only. Actual rates, terms, repayments, and balloon payment options depend on lender assessment, your individual circumstances, and current market conditions. Consult your accountant regarding specific tax implications.
Why Compare Harvester Finance Options?
The market for agricultural equipment finance is diverse, with major banks, non-bank lenders, and specialist agricultural financiers all offering products. Going direct to a single bank may limit your options and potentially lead to less competitive rates or unsuitable terms.
Comparison platforms like Loan Phone empower you to:
- Access More Lenders: Compare offers from 100+ lenders simultaneously, including those specialising in farm machinery.
- Save Time: Streamline the application process, avoiding repetitive paperwork with multiple institutions.
- Get Expert Guidance: Specialist brokers are available to provide human expertise, navigating complex scenarios and securing “left-of-centre” solutions.
- Personalised Options: Receive finance solutions tailored to your specific business needs, cash flow, and harvester type.
This efficient process can lead to better rates and terms, ensuring your farm gets the most suitable harvester finance solution.
Frequently Asked Questions
What types of finance are available for harvesters? +
Businesses can typically access harvester finance through chattel mortgages, commercial hire purchase (CHP), or finance leases. Each structure offers different benefits regarding ownership, GST treatment, and tax deductions. See Popular Harvester Finance Options for details.
What are the interest rates for harvester finance in 2026? +
Harvester finance rates in Australia typically range from 6-9% p.a. for established businesses with strong financials to 12%+ p.a. for newer operators or higher-risk profiles, as of 2026. Actual rates depend on your business's age, financial health, and the specific asset.
Can I get finance for a used harvester? +
Yes, businesses can finance both new and used harvesters. Lenders will assess the age, condition, and valuation of used equipment, with some applying maximum age restrictions (typically 10-15 years at loan end) or requiring professional appraisals.
What are the eligibility requirements for farm equipment loans? +
General eligibility includes a valid ABN, a minimum of 12-24 months trading history, demonstrated financial health, and a satisfactory credit history. Specialist lenders may offer more flexible criteria for newer businesses. See Harvester Finance Eligibility Criteria for more information.
Are there tax benefits for financing a harvester? +
Yes, financing a harvester can offer tax benefits such as depreciation deductions, claiming GST input tax credits (for chattel mortgages), and deducting the interest component of loan repayments. Always consult your accountant for advice specific to your business.
Get Harvester Finance for Your Business
Need expert guidance on your farm machinery application? Email: loans@loanphone.com.au Website: www.loanphone.com.au
Related Resources
Explore these related guides for business owners and ABN holders:
Disclaimer: This article provides general information only and should not be relied upon as financial or tax advice. Rates, terms, and eligibility vary by lender and individual circumstances. Tax benefits are subject to your specific business structure and circumstances. Always seek independent professional advice from a qualified accountant and financial adviser before making financing decisions.
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Last updated: 2026-02-17