Yes, GST can typically be included in truck and trailer finance, most commonly through a chattel mortgage where the GST-inclusive price is rolled into the loan. This means you're not left funding the GST amount upfront, though the exact treatment depends on your finance structure and GST accounting method.
The Short Answer
Yes. With a chattel mortgage, the most common structure for business truck and trailer purchases, the GST on the vehicle price can be rolled into the loan amount, so you are not out of pocket for it upfront. The exact treatment depends on the finance structure you choose and your GST registration status, so it's worth understanding how it works before you sign.
Why Chattel Mortgage Is The Go-To Structure
Under a chattel mortgage, you own the truck from settlement and the lender takes a mortgage over it as security. Because the purchase price (including GST) can typically be financed, you avoid finding a lump sum for GST on delivery day. If your business is registered for GST and accounts on a non-cash (accruals) basis, you may be able to claim the full GST credit back in your next Business Activity Statement, regardless of how the purchase is financed.
Cash Vs Accruals Accounting Matters
How and when you can claim the GST credit depends on whether your business reports GST on a cash or accruals basis. Accruals-basis businesses generally claim the full input tax credit in the BAS period the truck is invoiced, even though the loan is repaid over years. Cash-basis businesses may need to claim GST progressively as loan repayments are made. This is a question for your accountant, since getting it wrong can affect your BAS and cash flow planning.
Other Structures Treat GST Differently
Finance leases and novated-style arrangements can handle GST differently to a chattel mortgage, particularly around who claims the credit and when. Some structures spread the GST effect across rental payments rather than as a single upfront credit. If your business is not GST-registered, or runs a mixed input-taxed activity, the usual GST credit rules may not apply in full, which is another reason to confirm the right structure for your situation before settling on one.
What This Means For Your Cash Flow
In practice, financing the GST component means your deposit (if any) and monthly repayments are based on the drive-away price, not the GST-exclusive price, while the GST credit you claim back can be used to reduce your BAS liability or reinvest in the business. The price of the truck or trailer itself varies widely depending on make, model, age and condition, so it's worth getting a specific figure for your chosen asset rather than relying on a general estimate. Overdrive Truck Finance can structure low or no-deposit options and terms from 1 to 7 years across loan amounts from $20,000 up to $10 million and beyond, so the way GST is financed can be matched to how your business manages cash flow. Any indicative rate or repayment figure we provide is subject to lender criteria, credit assessment, fees, terms and approval, and will vary between applications.
Talk To Your Accountant, Then Talk To Us
We are a finance broker, not your tax adviser, so we always recommend confirming GST treatment and BAS timing with your accountant or the ATO before you finalise a purchase. What we can do is structure the finance itself, including how GST is rolled into the loan, to suit your business.
Get An Obligation-Free Quote
If you're weighing up how GST fits into your next truck or trailer purchase, get in touch for an obligation-free quote. Overdrive Truck Finance compares 80+ banks and non-bank lenders, and depending on your circumstances, pre-approval or approval may be available within a short timeframe on eligible applications, always subject to lender assessment. Enquiring is a soft credit check that won't affect your credit score.
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