Tool Loans

Tool Loans Australia

A fully equipped tradie's tool kit is worth far more than most people realise. A qualified electrician's complete professional setup including cordless power tools, test and measurement equipment, cable installation tools and van racking can easily total $15,000 to $30,000. A carpenter with a full suite of Milwaukee M18 FUEL cordless tools, a drop saw, table saw, nail guns and measuring equipment has $10,000 to $20,000 in tools alone before the van and trailer. A plumber's full kit including drain cameras, fusion equipment, press tools and hand tools runs $15,000 to $40,000. These are not small purchases. They are capital investments in a trade business that generate income every day they are used.

Australian Finance & Loans is an independent finance broker with access to over 50 lenders. We arrange business equipment finance under a chattel mortgage for ABN-holding tradies where the tools are used in a business, and personal loans for those purchasing tools without an active ABN or with primarily personal rather than business use. We also explain the Australian Apprenticeship Support Loan, which is a government-funded interest-free loan specifically for apprentices buying tools that most competing tool loan pages do not properly describe. Understanding which product is right for your specific situation is the most important first decision in tool finance, and we explain each option on this page.

The Most Important Decision: Business Loan vs Personal Loan for Tools

The single most consequential decision in tool finance is whether to use a business finance product (chattel mortgage) or a personal loan. This decision affects your tax position, your interest rate, and your eligibility. Getting it right from the start saves money every year you are using the tools.

Business Equipment Finance (Chattel Mortgage) — for ABN holders using tools in a business

If you have an active ABN and are purchasing tools primarily for use in your business to generate income, a chattel mortgage delivers significant tax advantages that a personal loan does not. Under a chattel mortgage for business tools: the full GST on the tool purchase is claimable on your next BAS, delivering 10% of the tool cost back in the quarter of purchase; the interest component of each repayment is deductible as a business expense each year; and the tools can be depreciated over their ATO effective life, or immediately deducted under the instant asset write-off if the tools are eligible and your business qualifies. For a GST-registered tradie purchasing $15,000 in tools, the immediate GST claim is $1,364 and the annual interest deduction on a $15,000 loan at 9% is approximately $1,350 in the first year. These are real, material financial benefits that a personal loan simply does not provide.

Personal Loan — for non-ABN holders or primarily personal-use tools

A personal loan is appropriate for purchasing tools where you do not have an active ABN, where the tools are purchased for personal or hobby use rather than income-generating work, or where you are an employee tradie who needs tools as a condition of your employment but is not operating as a business entity. Personal loan rates are typically higher than business chattel mortgage rates, and the tax benefits described above do not apply. However, employee tradies may be able to claim tool depreciation as a work-related deduction under their individual income tax return rather than through a business structure. Speak to your accountant about whether employee-purchased tools generate individual tax deductions for your specific employment situation.

The bottom line

If you have a valid ABN and your tools will be used in a business that generates income, a chattel mortgage is almost certainly the better financial product. The GST claim alone on a $10,000 tool purchase ($909) is worth more than the difference in interest rate between most personal loan and chattel mortgage products. If you do not have an ABN or your tool use is primarily personal, a personal loan is the appropriate product.

What a Complete Trade Tool Kit Costs: Real Numbers by Trade

One of the most useful things we can provide on this page is honest cost guidance on what a complete trade tool setup actually costs. Most tool loan pages are vague on amounts. Here are realistic figures by trade for a professional, production-quality setup using mid-to-premium brands.

Electrician

  • Cordless power tools: Milwaukee M18 FUEL or DeWalt FLEXVOLT drill combo, cable drill, impact driver, grinder, circ saw, jigsaw — $3,000 to $5,000 for a 5 to 8-tool combo with batteries and chargers

  • Test and measurement: Fluke 1587FC insulation tester, Fluke 376 clamp meter, multifunction tester (Metrel, MEGGER or Fluke) — $2,000 to $5,000 for a professional test kit

  • Cable installation: cable dispenser, fish rods, draw wire and conduit tools — $500 to $2,000

  • Laddaback, stepstools and working-at-height equipment: $500 to $2,000

  • Hand tools: pliers set, screwdrivers, cable strippers, crimpers, terminal tools — $500 to $1,500

  • Van racking and storage: Sortimo, Bott or custom van shelving — $3,000 to $8,000

  • Total professional electrician setup: $10,000 to $24,000

Plumber

  • Cordless power tools: Milwaukee M18 or Makita LXT hammer drill, SDS drill, sawzall, grinder — $2,000 to $4,000

  • Pipe press tools: Ridgid RP 340 or Milwaukee M18 press tool with jaw set — $3,500 to $6,000

  • Pipe fusion: Rothenberger or Georg Fischer electrofusion for poly pipe — $2,000 to $5,000

  • Drain inspection camera: Ridgid SeeSnake, CUES or PEARPOINT — $4,000 to $15,000 depending on length and quality

  • Drain clearing: Ridgid K-series or electric eel — $1,000 to $3,000

  • Hand tools: pipe cutters, spanners, thread taps, soldering equipment — $1,000 to $3,000

  • Pressure testing equipment and leak detection — $500 to $2,000

  • Total professional plumber setup: $14,000 to $38,000

Carpenter / Framer

  • Cordless power tools: Milwaukee M18 FUEL or Makita LXT circular saw, drill driver, impact driver, jigsaw, multi-tool — $3,000 to $6,000 for a full cordless kit

  • Nail guns: framing nailer, finish nailer, brad nailer — Paslode, Hikoki, DeWalt — $1,500 to $3,500 for a 3-gun set

  • Drop saw: 305mm compound mitre saw (Makita, Milwaukee, DeWalt) — $800 to $2,000

  • Table saw: contractor or cabinet saw — $500 to $2,500

  • Router and router table — $500 to $1,500

  • Concrete and masonry: SDS drill, concrete nailer, anchoring tools — $500 to $1,500

  • Hand tools: chisels, planes, measuring and marking — $500 to $1,500

  • Total professional carpenter setup: $7,500 to $18,500

Automotive Mechanic

  • Air tools: impact wrench, rattle gun, air ratchet, air hammer — $1,000 to $3,000 for quality Ingersoll Rand or CP set

  • Cordless impact tools: Milwaukee M18 FUEL, Makita LXT impact wrench set — $1,500 to $3,500

  • Hand tool set: Sidchrome, KING TONY or Snap-on socket set, spanners, ratchets — $2,000 to $8,000 depending on brand and completeness

  • Diagnostic equipment: launch scanner, OBD-II diagnostic tool, oscilloscope — $2,000 to $8,000 for professional diagnostic capability

  • Workshop equipment: jack stands, hydraulic jack, engine hoist — $1,000 to $3,000

  • Specialty tools: timing tools, suspension tools, brake tools by make and model — $1,000 to $5,000

  • Total professional mechanic setup: $8,500 to $30,500

Painter

  • Airless spray equipment: Graco Contractor PC Airless Sprayer or equivalent — $1,500 to $4,000

  • HVLP fine finish spray gun — $500 to $2,000

  • Cordless tools: drill, sander — $500 to $1,500

  • Preparation tools: scrapers, caulking guns, grinders, heat guns — $500 to $1,500

  • Ladders and step equipment — $500 to $2,000

  • Total professional painter setup: $3,500 to $11,000

Air Conditioning and Refrigeration Technician

  • Refrigerant recovery and recharge equipment: Yellow Jacket, JB Industries — $2,000 to $5,000

  • Manifold gauges and digital manifold: Testo, Fieldpiece or Yellow Jacket — $800 to $2,500

  • Vacuum pump and micron gauge — $500 to $1,500

  • Cordless tools: Milwaukee M18 or Makita hole saw kit, drill, tin snips — $2,000 to $4,000

  • Leak detection: electronic leak detectors and UV kit — $500 to $2,000

  • Copper pipe tools: flaring, bending, cutting — $500 to $1,500

  • Total professional AC technician setup: $6,300 to $16,500

The Milwaukee M18 FUEL Cordless Ecosystem: Why Tradies Finance a Platform, Not Just Tools

Understanding how professional tradies actually buy tools explains why a lump-sum tool finance facility often makes more financial sense than buying tools piece by piece.

Milwaukee M18 FUEL, DeWalt FLEXVOLT and Makita LXT are the three dominant professional cordless platforms in Australia. Each is a battery-based ecosystem: all tools in the platform share the same battery and charger system. The financial implication is that the initial platform investment — buying your first 4 or 5 tools with batteries and a charger set — is the most expensive purchase per tool, because you are establishing the battery ecosystem. Every subsequent tool in the same platform adds only the tool body cost, not additional batteries and chargers.

A tradie who commits to the Milwaukee M18 FUEL ecosystem with an initial kit of 8 tools including 4 batteries and a 6-port charger might spend $6,000 to $8,000. The next five tools they add to the same platform cost $300 to $600 each for bare tools alone. The total investment in a complete Milwaukee M18 FUEL professional setup of 15 to 20 tools over 3 years might be $10,000 to $15,000.

Financing the initial platform establishment as a single lump sum rather than buying tools individually as cash flow allows makes financial sense for several reasons. It gets the full battery and charger ecosystem established in one go, reducing the inefficiency of accumulating tools piecemeal over years. It means the tradie has the right tool for every job from the start, rather than improvising with inadequate equipment on some tasks. The full GST on the establishment purchase is claimable in one BAS quarter. And the repayments on a $12,000 tool loan at 9% over 3 years are approximately $381 per month — a manageable ongoing cost that is fully offset for most tradies by the increased productivity, additional jobs they can take on and the professional quality of work the full kit enables.

The Australian Apprenticeship Support Loan: What Apprentices Must Know

Every competitor tool loan page in Australia either does not mention the Australian Apprenticeship Support Loan (AASL) at all, or gives it one sentence. This is a significant omission because for Australian apprentices, the AASL is almost certainly a better tool finance option than a commercial loan — and most apprentices do not know it exists or understand how it works.

What the AASL is

The Australian Apprenticeship Support Loan (formerly the Trade Support Loan or TSL) is an Australian Government income-contingent loan for eligible apprentices undertaking a Certificate III or above qualification in a priority occupation. It is designed to help apprentices cover the cost of tools, equipment and living expenses during their apprenticeship when their wage is lower than a qualified tradesperson's income. As of 2025-26, the maximum AASL amount over the life of an apprenticeship is $25,983.

How AASL repayment works

The AASL is repaid through the tax system, exactly like a university HECS-HELP debt. Repayments begin once the apprentice's income exceeds the compulsory repayment threshold, which is $67,000 for the 2025-26 financial year. Repayments are a percentage of income above the threshold, applied through the tax return. The AASL does not create immediate monthly repayment obligations. If you are still an apprentice earning below $67,000, you make no repayments at all. This is fundamentally different from a commercial loan which requires repayment from the first month regardless of your income.

2025 legislation: 20% debt reduction

In 2025, the Australian Government passed the Universities Accord (Cutting Student Debt by 20 Per Cent) legislation, which applied a one-off 20% reduction to all AASL debts incurred on or before 1 June 2025. This was applied automatically by the ATO with no action required from apprentices. Future AASL borrowers also benefit from the updated repayment system, which uses a marginal calculation (repayments only on income above the threshold, not on total income once the threshold is crossed) and an increased threshold indexed to wage growth.

AASL completion discount

Apprentices who successfully complete their qualification receive a 20% discount on their total AASL debt. Combined with the 2025 debt reduction, this means apprentices who complete can benefit from a total reduction of approximately 36% on their AASL borrowing compared to the face value. This is an extraordinary financial benefit that no commercial tool loan can match.

AASL payment schedule (2025-26)

  • First year: $10,394 (12 monthly instalments of $866.17)

  • Second year: $7,795 (12 monthly instalments of $649.58)

  • Third year: $5,197 (12 monthly instalments of $433.08)

  • Fourth year and beyond: $2,598 (12 monthly instalments of $216.50)

Who should use the AASL

Any apprentice who is eligible for the AASL and needs to purchase tools should apply for the AASL before considering a commercial tool loan. The AASL is interest-free, repaid through the tax system only once income exceeds $67,000, and comes with a completion discount. A commercial loan at 9% per annum with monthly repayments starting immediately is a significantly more expensive option for the same outcome. The AASL covers the same tools a commercial loan would fund.

AASL eligibility basics

To be eligible for the AASL you must be an Australian citizen or permanent resident, be undertaking an Australian Apprenticeship in a qualification listed on the Australian Apprenticeship Priority List, and be in a full-time, part-time or school-based apprenticeship. The Priority List includes most trade qualifications including electrical, plumbing, carpentry, refrigeration and air conditioning, automotive, and many others. Apply through your Australian Apprenticeship Support Network provider. Visit apprenticeships.gov.au for the current Priority List and application information.

When a commercial loan makes sense for an apprentice

A commercial tool loan may still make sense for apprentices where: they have already reached the AASL maximum amount but need additional tools; the tools needed are not eligible under AASL purposes; they are not in a priority qualification but still need professional tools; or they are an apprentice who has completed their qualification and is now a qualified tradesperson establishing their own business. We arrange commercial tool finance for all of these situations.

Tools We Finance

Cordless Power Tool Systems

  • Milwaukee M18 FUEL: hammer drill/driver, impact driver, circular saw, sawzall, grinder, oscillating multi-tool, jigsaw, M18 ONE-KEY tools and accessories

  • DeWalt FLEXVOLT and XR: hammer drill, impact driver, circular saw, miter saw, grinder, track saw

  • Makita LXT: complete 18V range and 40V XGT high power tools including outdoor equipment

  • Hikoki (Hitachi): MultiVolt and 18V ranges

  • Bosch Professional: 18V blue range including GBH SDS rotary hammer and specialist tools

  • Festool: track saw, sander, router, domino joiner — premium cabinetry and finish carpentry tools

Power Tools (Corded and Specialty)

  • Table saws: SawStop, Laguna, Powermatic and Jet — $1,500 to $5,000 for professional contractor saws

  • Bandsaw, thicknesser and jointer for woodworking

  • Concrete and masonry: Husqvarna floor saw, core drill, wall saw — $3,000 to $20,000

  • Diamond blade systems and tile saws

  • Dust extractors: Festool CTM, Milwaukee M18 FUEL, Hilti VC series

Hand Tools and Professional Sets

  • Snap-on, Sidchrome and KING TONY socket and spanner sets for automotive and mechanical trades

  • Bahco, Stanley and Knipex hand tool sets for electricians, plumbers and general trade

  • Precision measuring and layout tools: Leica Disto laser measures, Hilti and Stabila levels

  • Pipe threading and fitting tools: Ridgid and Rex

Diagnostic and Test Equipment

  • Fluke test and measurement: multimeters, clamp meters, thermal imagers, power quality analysers

  • FLIR thermal imaging cameras: $500 to $5,000 for inspection and diagnostic work

  • Ridgid SeeSnake drain inspection camera systems: $4,000 to $15,000

  • Automotive diagnostics: Autel MaxiSys, Launch X431 and Snap-on diagnostic platforms

  • Gas leak detectors: combustible gas, refrigerant and CO detection equipment

Workshop and Storage

  • Van racking and shelving: Sortimo, Bott, Modul-System and custom van fit-outs

  • Tool trolleys and portable storage: Milwaukee PACKOUT, DeWalt ToughSystem, Festool Systainer

  • Workbenches and workshop setup for home-based or workshop-based trade operations

  • Compressors: portable and workshop air compressors from Atlas Copco, Ingersoll Rand, CAPS

Specialty Trade Equipment

  • Hilti cordless and corded professional tools: rotary hammer, demo hammer, diamond coring

  • STIHL and Husqvarna outdoor power equipment: chainsaws, brushcutters, blowers for landscaping and arborist trades

  • Pipe press tools: Milwaukee M18, Ridgid RP 340, Viega Pressgun

  • Refrigeration and HVAC tools: manifold gauges, recovery equipment, vacuum pumps, leak detectors

  • Welding equipment: MIG, TIG and stick welders from Lincoln Electric, Miller, ESAB and Cigweld

Finance Structures for Trade Tools

Chattel Mortgage (Business ABN Finance)

For ABN-holding tradespeople purchasing tools for business use. You own the tools from settlement. The full GST is claimable on your next BAS. Interest is deductible. Depreciation is claimed over the ATO effective life. The instant asset write-off may allow immediate full deduction for eligible assets and eligible businesses: confirm current thresholds with your accountant. Available from $2,000 upward. Rates from approximately 7.99% to 14.99% per annum depending on the lender, the loan amount and the applicant's credit profile. Terms from 1 to 5 years. The most tax-efficient structure for working tradies with an active ABN.

Unsecured Business Loan

For tools purchased as a business expense but where the individual items are below the minimum amount for equipment-specific finance, or where a general working capital facility is more appropriate than asset-specific finance. Unsecured business loans from $5,000 to $75,000 are available from non-bank lenders within 24 to 48 hours for established businesses. Interest is deductible but GST is not separately claimable upfront as it is under a chattel mortgage. Rates from approximately 12% to 25% per annum.

Personal Loan

For tradies without an ABN, employees purchasing tools for work use, or apprentices not accessing the AASL. Unsecured personal loans from $2,000 to $50,000 at rates from approximately 6.99% to 19.99% per annum. No GST claim, no interest deduction at business level. May be available for immediate same-day or next-business-day approval for well-qualified applicants. Always consider whether the AASL (for apprentices) is available before taking out a personal loan for tools.

Rent to Own

Rent-to-own allows the tradie to use tools immediately under a rental arrangement with a built-in purchase option. Fully deductible rental payments. Useful for testing a platform or brand before committing to full ownership, or for new tradespeople who cannot access standard equipment finance. Purchase option can be exercised at any point or at end of term.

Tax Treatment of Tools: What Tradies Need to Know

Immediate deduction for low-cost tools

Under ATO rules, individual tools costing $300 or less that are used more than 50% for work purposes can be immediately deducted in the year of purchase, regardless of their effective life. This means that many individual hand tools, measuring tools and low-cost accessories can simply be claimed as immediate tax deductions in the year you buy them without needing finance at all. A $250 multimeter, a $150 spirit level and a $180 set of drill bits are all potential immediate deductions rather than depreciating assets.

For tools costing more than $300

Tools and equipment costing more than $300 are depreciated over their ATO effective life, unless the instant asset write-off applies. The instant asset write-off allows eligible small businesses to immediately deduct the full cost of eligible depreciating assets in the year they are first used or installed ready for use. The threshold and eligibility criteria for the IAWO change regularly. Always confirm current provisions with your accountant before making a purchase decision based on an assumed write-off.

Proportion of business use

If a tool is used partly for business and partly for personal use, only the business use percentage of the cost is deductible. A tradie who uses a drill 90% for paid work and 10% for home projects can deduct 90% of the depreciation or IAWO claim. Tools used exclusively for business can be fully deducted in proportion to the business use.

Employees claiming tool deductions

Employees who purchase tools as a genuine condition of their employment (i.e. their employer requires them to have their own tools) can claim tool costs as a work-related deduction in their individual income tax return. This is separate from the business deduction available to self-employed operators and ABN holders. Employees should confirm with their employer or the ATO what qualifies as a required tool cost for their specific employment arrangement.

Protecting Financed Tools: Insurance

A topic that virtually no tool loan page in Australia addresses is insurance. Financing tools and failing to adequately insure them is one of the most common and most costly mistakes tradies make. A $15,000 tool kit on finance with no insurance that is stolen from a van overnight creates a $15,000 debt with no asset to show for it.

What standard home contents insurance does not cover

Standard home contents insurance typically does not cover tools that are stolen from a vehicle, a workplace or a client's premises. Most policies cover contents at the insured address only, and many have per-item and total tools limits that are significantly below the replacement cost of a professional tradie's kit. A policy with a $2,000 tools limit does not replace a $12,000 Milwaukee toolkit.

What tradies need: mobile plant and equipment or trade tools insurance

Specialist mobile plant and equipment insurance or dedicated tradie tools insurance covers tools against theft from a vehicle, theft from job sites, accidental damage and in some policies loss anywhere in Australia. Providers including Trades Insure, Allianz, QBE and specialist commercial insurers offer policies designed for working tradies. Premiums vary but a $15,000 to $20,000 tools policy through a specialist insurer typically costs $300 to $700 per year. For a tradie with financed tools, this is a non-negotiable operating cost. We strongly recommend all clients arranging tool finance also arrange appropriate tools insurance at the same time.

Tool Loan Details

Loan Amounts

We arrange tool finance from $1,500 for individual high-value tools to $30,000 for complete trade setups including cordless platforms, specialty tools, workshop storage and van fit-outs. The most common single tool finance amounts range from $3,000 to $15,000. Bundled tool kit applications of $8,000 to $20,000 for a complete tradesperson's initial setup are a regular application type.

Loan Terms

Business chattel mortgage for tools: 1 to 5 years. Personal loan for tools: 1 to 7 years. Most tradies choose 2 to 3-year terms for tool finance, reflecting the relatively short productive life of power tools compared to heavy plant. A $10,000 tool loan at 9.99% over 3 years has monthly repayments of approximately $323 and total interest of approximately $1,625.

Deposit

Zero deposit is available for established businesses with clean credit purchasing tools through a chattel mortgage. For personal loans, most lenders do not require a deposit for amounts under $30,000 for well-qualified applicants. For new ABN holders or applicants with limited credit history, a deposit of 10% to 20% may be required.

Approval and Funding Speed

Business tool finance (chattel mortgage) for established tradies under $30,000: 24 to 48 hours for conditional approval, funded within 1 to 2 business days. Personal tool loans: same-day or next-business-day approval available from select lenders via NPP/OSKO for well-qualified applicants. For apprentice AASL applications: processed through your Australian Apprenticeship Support Network provider, typically 1 to 2 weeks.

Frequently Asked Questions About Tool Loans in Australia

What is the best way to finance tools as a tradie in Australia?

For a qualified tradesperson with an active ABN operating their own business, a chattel mortgage is almost always the best structure. You own the tools from day one, claim the full GST on your next BAS, deduct interest each year and claim depreciation or the instant asset write-off. For an apprentice in a priority qualification, the Australian Apprenticeship Support Loan is almost certainly better than any commercial loan: it is interest-free, repaid only once your income exceeds $67,000 through the tax system, and comes with a 20% completion discount. For an employee tradie without an ABN, a personal loan is the appropriate product.

How much does it cost to set up a complete tradie tool kit?

This varies significantly by trade. A professional electrician's full setup runs $10,000 to $24,000. A plumber's complete kit including drain camera is $14,000 to $38,000. A carpenter's full cordless and stationary setup is $7,500 to $18,500. A mechanic's complete professional setup is $8,500 to $30,500. These figures include cordless power tools with batteries, trade-specific specialty tools, hand tools and storage. The best way to establish a complete kit affordably is to finance the full setup in one facility rather than accumulating tools piecemeal over years.

Can I finance a full cordless tool kit with batteries?

Yes. A complete cordless platform setup including tools, batteries and chargers is financed as a single facility. Batteries and chargers form an essential part of the productive tool system and are included in the financed amount alongside the tool bodies. For established tradies with an ABN, the full GST on the total kit cost including batteries and charger is claimable on the first BAS after settlement.

What is the Australian Apprenticeship Support Loan and is it better than a commercial tool loan?

The Australian Apprenticeship Support Loan (AASL) is an Australian Government income-contingent loan for eligible apprentices in priority qualifications. For the 2025-26 year, the maximum is $25,983 over the life of the apprenticeship. It is interest-free and repaid through the tax system only once your income exceeds $67,000, just like a HECS debt. Apprentices who complete their qualification receive a 20% discount on their total debt. For eligible apprentices, this is significantly better than a commercial tool loan which charges interest from day one and requires monthly repayments regardless of income. Apply through your Apprenticeship Support Network provider or visit apprenticeships.gov.au.

Are tools tax deductible when financed?

Under a chattel mortgage for business use, the full GST is claimable on the first BAS after purchase, interest is deductible each year, and depreciation is claimed over the ATO effective life or under the instant asset write-off for eligible assets. The financing does not change the deductibility: a financed tool has the same tax treatment as a cash-purchased tool. Individual tools costing $300 or less used more than 50% for work are immediately deductible regardless of whether financed. Always confirm the specific tax treatment of your tool purchase with your accountant.

Can I finance tools as a new ABN holder or a new tradie?

Yes. New ABN holders are eligible for business tool finance through specialist lenders on our panel. The strongest day-1 ABN applications have a trade qualification or apprenticeship completion, a clean personal credit file and ideally a signed contract or letter from an employer confirming work. For new businesses without a track record, a personal loan is also available. Equipment finance for tools has a lower approval threshold for new businesses than unsecured business loans because the tools provide the primary security.

Can I include a work van fit-out with my tool finance?

Yes. Van racking, shelving and storage systems from Sortimo, Bott or custom fitters are capital expenditure that can be financed alongside tools in a single bundled facility. For a tradie purchasing a van, van racking and a complete tool kit simultaneously, we can arrange a single facility covering all components. Note that the van itself is a commercial vehicle financed as a separate vehicle loan product rather than an equipment loan; we arrange van finance separately.

What brands of tools can I finance?

We finance all major professional tool brands including Milwaukee, DeWalt, Makita, Bosch Professional, Hikoki, Festool, Hilti, Ridgid, Snap-on, Sidchrome, Fluke, FLIR, Husqvarna, STIHL, Lincoln Electric, Miller, ESAB and any other brand available through Australian trade tool suppliers. Brand choice does not affect loan eligibility. The key factors are the total loan amount, your ABN status and whether the tools are for business use.

Is there a minimum tool loan amount?

Most business equipment finance lenders on our panel have a minimum loan amount of $2,000 to $3,000 for chattel mortgage products. Personal loan lenders typically offer from $1,500 to $2,000 minimum. For individual tool purchases below $2,000, a personal loan or a business credit card may be more practical than a formal loan. For complete tool kit setups above $3,000, a chattel mortgage or personal loan is appropriate.

How does the instant asset write-off affect tool purchases?

The instant asset write-off allows eligible small businesses to immediately deduct the full cost of eligible depreciating assets in the year they are first used or installed ready for use, rather than depreciating them over the ATO effective life. Tools purchased under a chattel mortgage where the business qualifies and the asset is eligible may be fully deductible in the year of purchase. This is a significant tax benefit that is separate from and in addition to the GST claim and the interest deduction. The threshold and eligibility criteria for the IAWO change regularly. Confirm current provisions with your accountant before structuring a purchase to rely on the write-off.

Can an employee claim tool finance repayments as a tax deduction?

An employee cannot deduct loan repayments as a work-related expense. However, an employee who purchases tools required for their employment can claim depreciation on those tools as a work-related deduction in their individual income tax return. The amount deductible each year is based on the ATO effective life depreciation schedule for that tool type. The personal loan interest itself is not deductible by an employee. For employees who need significant tool investment, it is worth discussing with a tax agent whether transitioning to an ABN-based working arrangement could provide better tax outcomes.

Can I bundle tool insurance into my tool finance?

Tool insurance is not bundled into equipment finance as a standard product. It is arranged separately through an insurance broker or specialist tradie insurer. However, having appropriate insurance in place before the finance settles is strongly recommended. A financed tool kit stolen from a van with no insurance leaves the tradesperson owing the full loan balance with no tools. We recommend all clients arranging tool finance also arrange mobile plant or trade tools insurance with a specialist provider before taking delivery of financed tools.

What documents do I need to apply for a tool loan?

For a business chattel mortgage under $30,000: ABN, driver's licence, and a quote or invoice from the tool supplier confirming the items and total cost. No financial statements or tax returns required for most applications in this range. For larger amounts or low-doc business loan applications: 3 to 6 months of business bank statements and BAS confirmations. For personal loan applications: driver's licence, recent payslips or 90 days of bank statements. For AASL: contact your Australian Apprenticeship Support Network provider — no bank statements or credit assessment required.

Can I get a tool loan with bad credit?

Yes. We have specialist lenders on our panel who consider tool finance applications from applicants with impaired credit. For business applicants with impaired credit, rates are higher but approval is achievable where current income is consistent and the ABN is active. For personal loan applicants with impaired credit, specialist personal loan lenders are available. We assess your specific situation before submitting any application to protect your credit file from unnecessary declined applications. Apprentices should prioritise the AASL over commercial borrowing regardless of credit status, as the AASL has no credit assessment requirement.

Why Choose Australian Finance & Loans for Your Tool Finance

  • Independent broker: we compare 50+ lenders and find the best rate and structure for your specific tool purchase and business situation

  • Business vs personal distinction: we ensure every tradie gets the right loan type — chattel mortgage for ABN holders, personal loan for non-ABN holders

  • AASL guidance: we explain the Australian Apprenticeship Support Loan to every apprentice and ensure they know it is available before recommending commercial borrowing

  • All brands financed: Milwaukee, DeWalt, Makita, Bosch, Hilti, Ridgid, Snap-on, Fluke, Festool and all others

  • Bundled kit applications: single facilities for complete cordless platform setups, specialty tools and van storage

  • Tool insurance reminder: we remind every client to arrange specialist trade tools insurance before taking delivery

  • Fast: 24 to 48 hours for most business and personal tool finance applications under $30,000

  • Same-day funding available from select lenders for urgent tool replacement needs via NPP/OSKO

  • Melbourne-based team with national reach across all states and territories