Updated 14 October 2026. Reviewed by James Rock (National Partnerships Director).
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If you are buying equipment on finance, a multi-year policy can run for the same 12 to 60 months as your loan, with one premium that does not change at renewal.
Your lender will want a certificate of currency
The equipment is the lender’s security, so they will need proof it is insured before the finance settles. Once you accept the policy online, the certificate of currency usually follows in about five minutes. What a certificate of currency is.
Premium funding, or a premium inside your finance
An annual policy is often paired with premium funding, which adds a second finance cost. A fixed multi-year premium can be paid monthly or included in the equipment finance with participating lenders. Premium funding compared.
Pay upfront, pay monthly, or include it in your finance with participating lenders, so one monthly repayment covers both. Once you accept, your certificate of currency follows in about five minutes.
Equipment finance in numbers
Australian lenders wrote $20.8 billion of new plant and equipment finance for small businesses in 2025-26. That is about 35% of all new fixed-term borrowing by small businesses, more than any other purpose except buying property. The ABS counts a loan as small business when the lender’s exposure is under $1 million.
Work out the full monthly cost
The equipment finance calculator adds a fixed insurance premium to your finance repayments, with or without a balloon. New to the finance itself? How a chattel mortgage works and balloon payments explained.
Frequently asked questions
Do I need insurance before equipment finance settles?
Yes. Lenders need a certificate of currency before settlement, because the machine is their security.
Can the insurance term match my finance term?
Yes. A multi-year policy runs from 12 to 60 months, with one premium fixed for the whole term.
Can the premium go into my finance?
With participating lenders, yes: one repayment covers the machine and the insurance. You can also pay upfront or by the month.
Does the lender need to be named on the policy?
Usually. Tell us the lender when you get your indication and our partner notes it on the policy.
What if the machine is written off during the loan?
The claim goes towards what you owe the lender first, and any surplus comes to you. If the payout is more than the insured value, cover can pay up to an extra 30% above the insured value towards it. Insure for the full insurable value.
The instant asset write-off
Our instant asset write-off guide works through what the $20,000 limit means for plant and machinery.
According to the ATO (page updated 28 August 2026), a business with aggregated turnover under $10 million that uses the simplified depreciation rules can immediately deduct the business portion of an asset costing less than $20,000, if it was first used or installed ready for use on or after 1 July 2023. The limit applies to each asset. An asset that costs more goes into the small business pool and is depreciated over time.
General information only, not tax advice. Check with your accountant how this applies to your business.
Get your insurance indication in about 90 seconds.
Sources
- Australian Bureau of Statistics: Lending Indicators, June quarter 2026
- Australian Taxation Office: Instant asset write-off for eligible businesses
- Product information from our specialist insurance partner (August 2026)
