Quick answer
Melbourne businesses use chattel mortgages, leases and hire purchase to fund machinery, vehicles and plant, with the equipment normally serving as the lender's security. Victoria adds two local twists. Since 1 July 2026, duty on a used goods vehicle is $8.40 per $200 against $5.40 for a new one, and Victorian Energy Upgrades discounts can cut the price of eligible efficient equipment before you finance it.
Key points
- Victorian duty on non-passenger vehicles is $5.40 per $200 if new but $8.40 per $200 if used or re-registered, as at 1 July 2026
- Victorian Energy Upgrades discounts on efficient lighting, motors, heating and cooling, and commercial solar reduce the amount you need to borrow
- Melbourne's manufacturing belts in the south-east and north buy specialised machines that lenders value more carefully than trucks
- Warehouse growth in the west keeps forklifts, racking and prime movers among the easiest assets to finance
- The Victorian Small Business Commission offers low-cost mediation if a supplier dispute holds up delivery or payment
- Security
- The equipment, registered on the PPSR
- Vic duty, new goods vehicle
- $5.40 per $200 (from 1 July 2026)
- Vic duty, used goods vehicle
- $8.40 per $200 (from 1 July 2026)
- Local office
- None; handled by phone and online
Picture a family-owned sheet metal business in Dandenong South. Its 15-year-old laser cutter is slow, and a supplier has quoted $340k for a new fibre laser, plus $18k for an upgraded compressor and $12k for LED high-bay lighting while the electrician is on site. The owners are profitable but don’t want to drain their working capital. In Melbourne, that’s a very ordinary equipment finance request, and it raises most of the questions this page answers.
For the mechanics of the product in general, see our main equipment finance page. Below, we focus on what changes when the buyer is in Melbourne: Victorian duty, a state energy discount scheme that reduces the price before finance, and how financiers view each industrial belt. We have no Melbourne office; enquiries are handled by phone and online.
Which Melbourne industries borrow for equipment?
Melbourne has one of the country’s deepest manufacturing bases, and its industrial land falls into fairly distinct belts.
The south-east: Dandenong South, Braeside, Moorabbin, Bayswater. Metal fabrication, plastics, packaging, food processing and automotive parts. Purchases are CNC machines, lasers, press brakes, injection moulders and production lines. Our south-east Melbourne page covers the area more broadly.
The north: Campbellfield, Thomastown, Epping. Manufacturing, building supplies and fresh produce wholesaling around the Melbourne Market at Epping. Cool rooms, forklifts, refrigerated trucks and packing lines are common requests.
The west: Truganina, Derrimut, Laverton North, Altona. Distribution centres and transport yards. Prime movers, trailers, reach trucks, racking and yard equipment dominate.
Inner Melbourne. Hospitality, health and professional services. Espresso machines, kitchens, dental chairs, imaging gear and IT.
The Big Build. Rail, road and tunnel projects across the city keep civil contractors and subcontractors buying excavators, tippers, rollers and traffic-management vehicles.
How do lenders weigh a fibre laser against a forklift?
This is where Melbourne’s manufacturing focus matters. Lenders grade equipment by how easily they could sell it if they ever had to:
- Forklifts, trucks, trailers and excavators sell readily anywhere in the country. They’re often approved on statements and a short application.
- Production machinery such as lasers, CNC centres and moulding machines holds value but has fewer buyers. Expect a request for financials, and sometimes a valuation.
- Custom lines and installed systems are the hardest. Once bolted in and configured for one factory, their resale value drops sharply. Lenders may ask for a deposit or additional security.
For the Dandenong South business above, the fibre laser sits in the middle group. A lender comfortable with manufacturers would usually want two years of financials, the supplier’s quote and evidence the business can service the repayments. Our page on business loans for manufacturers explains how lenders read factory cash flow more generally.
What does Victorian duty add to a vehicle?
As at 1 July 2026, the State Revenue Office charges duty on non-passenger vehicles (which includes utes, vans and other goods-carrying vehicles) at:
| Situation | Duty rate |
|---|---|
| New, never registered in Victoria or elsewhere | $5.40 per $200 or part |
| Used, changing hands | $8.40 per $200 or part |
That gap catches people out. Run the numbers on a $48,000 dual-cab:
- New: 240 blocks of $200 × $5.40 = $1,296 in duty
- Used, same value: 240 × $8.40 = $2,016 in duty
A $720 difference won’t decide the purchase on its own, but it narrows the saving on a near-new vehicle. If you plan to roll duty into the finance, the gap grows once interest is added. Plug both versions into the equipment finance calculator before choosing. For trucks, separate heavy-vehicle registration costs apply as well.
Comparing new and used options for your fleet? Start a short enquiry here, and we’ll help you weigh the total cost. The form is short, and your credit report isn’t touched by it.
Can Victorian Energy Upgrades shrink the amount you borrow?
Often, yes. Victorian Energy Upgrades is a state program that gives businesses discounts on approved energy-efficient products, provided they’re bought and installed through an accredited provider. According to business.gov.au, eligible categories include commercial and industrial lighting, commercial solar panels, heating and cooling, hot water, high-efficiency motors and window glazing, and applications can be made at any time.
Because the discount comes off the provider’s price, the figure you finance is lower. For the Dandenong South business, the LED high-bays and possibly the compressor motor could qualify, which would reduce the total the lender needs to fund. The discount amounts vary with the product, so get a written quote that shows it before you apply for finance.
Lenders generally treat solar and efficiency gear as lower-grade security than vehicles, because it’s installed and hard to recover. That’s no barrier for an established business, but it’s one more reason to ask for a quote that’s clear about what’s included.
Which structure suits a Melbourne purchase?
| Structure | You own it | Fits when |
|---|---|---|
| Chattel mortgage | From day one | Long-life machines and vehicles you’ll keep; claims GST upfront |
| Hire purchase | After the final payment | You want eventual ownership but prefer the financier holds title meanwhile |
| Finance or operating lease | No, unless you buy at the end | Technology that dates fast, or gear you’ll hand back |
Used machinery is common in Melbourne’s factories, and many lenders fund it. Our guide to finance for used equipment walks through inspections, valuations and PPSR searches.
When the supplier or the deal goes wrong
Delayed deliveries, machines that don’t perform and disputes over deposits happen. The Victorian Small Business Commission provides low-cost dispute resolution, starting with a dispute resolution officer and moving to mediation if both sides agree. Settlement terms signed there are binding. It’s worth knowing about before a stand-off with a supplier drags on for months while finance payments continue.
Your bank, then the specialists
The big banks have long been major equipment financiers in Victoria, and when your business meets their criteria, they’re often the most competitive choice. Have that conversation first.
If the answer is no, or the bank won’t fund used or specialised machinery, independent asset financiers step in. Flexicommercial, Dynamoney and Vestone Capital are among the lenders in our directory that fund a broad mix of equipment. For wider borrowing in the city, see business loans in Melbourne and our Victoria overview.
Upgrading the floor, the fleet or the kitchen?
Better equipment should pay for itself in output, lower power bills or fewer breakdowns. Our role is finding a lender whose structure lets it do that without straining cash flow.
Our enquiry form needs only about sixty seconds of your time. Asking costs nothing on your credit file. Rather than circulating your details to every financier we know, we keep the enquiry in-house, and a team member who understands asset finance reviews it and calls you. Be specific about the machine, the supplier and the price, plus whether a Victorian Energy Upgrades discount applies; accurate figures help us line up the right financier straight up.
Frequently asked questions
Why is duty higher on a used ute than a new one in Victoria?
Victoria's State Revenue Office applies a lower rate to new non-passenger vehicles that have never been registered, and a higher rate when a used one changes hands. As at 1 July 2026 the figures are $5.40 per $200 for new and $8.40 per $200 for used. Factor that into the comparison when a second-hand ute looks cheaper.
Can I finance equipment that gets a Victorian Energy Upgrades discount?
Yes. The discount is applied by the accredited provider, so you typically finance the reduced price. Ask the provider for a quote that shows the discount separately, because the lender will want the final invoice figure.
Will a lender fund a custom-built production line?
Some will, but expect more questions. Specialised machinery has fewer potential buyers, so lenders often ask for a deposit, a valuation, stronger financials or additional security. Standard machines with known resale markets are much easier.
How quickly can a Melbourne business get equipment finance approved?
For a standard vehicle or forklift and a business with clean statements, approval can come within a few business days. Larger or specialised purchases that need financials and a valuation take longer, so start early if the supplier has a delivery slot to fill.
Do I need property to secure equipment finance in Melbourne?
Usually not. The equipment itself is the security in most deals. Property only comes into it when the asset is hard to resell, the business is very new, or the amount is large relative to turnover.