🆕 2026–27 Budget Update: $20k Write-Off Now Permanent
The 12 May 2026 Federal Budget proposes to make the $20,000 instant asset write-off a permanent feature of the tax law. Business caravans used as site accommodation or mobile offices under $20,000 (ex-GST) can now be fully written off in the year of purchase — every year. Read the full guide →
How Caravan Finance Works in Australia
Australia is one of the world’s most enthusiastic caravan markets, with over 800,000 registered caravans on Australian roads. Whether you’re buying a pop-top for weekend escapes, a full off-road setup for extended travel, or a site caravan for worker accommodation on a construction or mining site, there are structured finance options specifically for your needs.
Caravan finance works by spreading the purchase cost over 1–7 years through either a secured personal loan (for private buyers), a chattel mortgage (for business buyers), or a finance lease (for businesses using the caravan as a commercial asset). The caravan typically secures the loan, which means rates are considerably lower than unsecured personal loans.
Types of Caravans We Finance
- Pop-tops & semi-off-road — Jayco, Coromal, Regent ($20K–$60K)
- Full off-road caravans — Bushtracker, Xplor, MDC, New Age ($60K–$120K)
- Luxury fifth-wheelers — Lifestyle, Majestic, Living Simply ($80K–$200K+)
- Camper trailers — Kimberley, Patriot, Austrack ($20K–$60K)
- Site vans & accommodation caravans — for construction, mining, or agricultural businesses
- Caravan hire fleets — caravans used commercially in a hire or tourism business
Caravan Finance Rates – 2026
Updated May 2026 • Rates are indicative only and subject to lender approval, credit profile, asset age, and loan amount.
| Finance Type | Indicative Rate (p.a.) | Best For |
|---|---|---|
| Secured personal loan (new caravan) | 7.49%–12.99% | Private buyers, new vans |
| Secured personal loan (used caravan) | 8.99%–16.99% | Private buyers, caravans up to 15 years old |
| Chattel mortgage (business) | 7.49%–11.99% | GST-registered businesses, site vans |
| Finance lease (business) | 7.99%–12.49% | Businesses wanting lease payments as a deduction |
*Your rate depends on your credit score, time in business (for commercial finance), asset age, loan-to-value ratio, and loan term. View our full rates guide →
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Open Free Calculator →Business Caravan Finance vs Personal Caravan Finance
The right finance product depends on whether the caravan is primarily for personal recreation or genuine business use. Here’s how the two options compare:
| Feature | Personal (Secured Loan) | Business (Chattel Mortgage) |
|---|---|---|
| GST credit | No | Yes — claim on BAS |
| Instant asset write-off | No | Yes (if <$20k ex-GST & business use) |
| Depreciation deduction | No | Yes |
| Interest deduction | No | Yes (business-use portion) |
| Who can apply | Any individual | ABN holders, companies, trusts |
| Approval speed | Same day–48 hrs | Same day–3 business days |
Using a Caravan for Business
The most common business uses for caravans include:
- Remote workforce accommodation — construction, mining, and agricultural businesses use site caravans instead of hotel rooms, often saving thousands per week
- Mobile offices — pop-up sales offices, onsite project management, mobile veterinary clinics
- Commercial hire & tourism — caravan hire businesses, glamping operations, eco-tourism parks
- Film and media production — unit base caravans, costume and makeup trailers
⚠️ Business Use Requirement
To claim the instant asset write-off or depreciation on a business caravan, the caravan must be used principally for income-generating business activities. Mixed personal/business use is allowed, but only the business-use percentage is deductible. Always keep records of business use (logbook, invoices, accommodation rosters). Consult your tax adviser before claiming.
The $20,000 Instant Asset Write-Off & Caravans in 2026
The 2026–27 Federal Budget proposes to make the $20,000 instant asset write-off permanent. This is significant for businesses that use caravans as genuine work assets. Here’s how it works:
Who Can Claim the Write-Off on a Caravan?
- Your aggregated annual turnover must be under $10 million
- The caravan must cost under $20,000 excluding GST
- The caravan must be used for a genuine business purpose (not just personal travel)
- You must use a chattel mortgage or hire purchase (not operating lease or finance lease)
- The caravan must be first used or installed ready for use in the financial year of the claim
Real Example: Site Caravan Tax Savings
A concreting business buys a secondhand site caravan for workers on a remote project: purchase price $18,000 + $1,800 GST = $19,800 total.
| Tax Item | Amount |
|---|---|
| GST credit (claimed on BAS) | $1,800 |
| Instant write-off deduction (ex-GST) | $18,000 |
| Tax saving at 27.5% company rate | $4,950 |
| Total Year 1 tax benefit | $6,750 |
| Net cost after tax & GST | $13,050 |
Estimates only. Consult your tax adviser for your specific situation. Always verify the current write-off status with the ATO.
For caravans over $20,000, the asset enters the small business general depreciation pool — you still claim depreciation, just spread over multiple years at 15% (Year 1) then 30% per year after that.
Full guide: $20k Write-Off Made Permanent – What Businesses Need to Know →
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Get a Free Quote →Finance Structures for Caravans
Chattel Mortgage (Business)
The most tax-effective structure for business caravans. You own the caravan from settlement, claim the GST upfront, and can claim the instant asset write-off (if eligible) or depreciation. Interest is fully tax-deductible. A chattel mortgage is available to sole traders, companies, and trusts with an active ABN.
Secured Personal Loan (Private)
The standard structure for private caravan buyers. The caravan secures the loan, giving you a significantly lower rate than an unsecured personal loan. No business use required. Terms up to 7 years. Rates are typically 7.49%–16.99% depending on credit profile and caravan age.
Finance Lease (Business)
The lender owns the caravan and leases it to your business. Monthly payments are fully tax-deductible. At the end of the term, pay the residual value to take ownership, refinance, or return the asset. No instant write-off, but payments are a clean operating expense. Best for businesses that prefer predictable monthly costs.
Comparison Summary
| Structure | Ownership | Write-Off? | GST Credit | Best For |
|---|---|---|---|---|
| Secured Personal Loan | Immediate | No (private) | No | Private buyers |
| Chattel Mortgage | Immediate | ✅ Yes (business) | ✅ Upfront | Business buyers, max tax benefit |
| Finance Lease | At end of term | ❌ No | Monthly | Business, lower monthly payments |
Eligibility for Caravan Finance
Personal Caravan Finance
- Australian resident or citizen
- Age 18+
- Stable income (full-time, part-time, or self-employed)
- Credit score meeting lender minimums (typically 600+)
- No undischarged bankruptcies
Business Caravan Finance (Chattel Mortgage)
- Active ABN — registered for GST preferred
- ABN trading for at least 12 months (some lenders accept 6 months with supporting documents)
- Clean personal and business credit
- Genuine business use of the caravan (site accommodation, hire fleet, mobile office)
- BAS statements, tax returns, or bank statements as income evidence
If your situation is unusual — bad credit, new ABN, high-value caravan, or a hire business — talk to us. We work with specialist lenders who can often say yes when mainstream banks say no.
Tips to Get Approved for Caravan Finance
- Know your credit score — check it for free via Equifax or Experian before applying. Lenders will check it anyway; better to know in advance.
- Choose the right structure — for business use, chattel mortgage gives the best tax outcome. For personal use, a secured loan beats an unsecured one every time.
- Have documents ready — personal ID, proof of income (payslips or tax returns), and for business applications, your last two years of financials or recent BAS statements.
- Older caravans need a larger deposit — caravans over 10 years old may require 10–20% deposit. This reduces the lender’s risk and can improve your rate.
- Don’t apply with multiple lenders at once — each credit enquiry lowers your score slightly. Let a broker shop the market for you; one application, multiple lenders compared.
- For business use, document the purpose — if claiming tax deductions, keep a clear paper trail: where the caravan is used, for what projects, and for how long.
Not Sure Which Structure Is Right for You?
Use our free calculator to compare weekly repayments across different loan terms and amounts. Or get a quote and let a broker do the comparison for you.
Calculate Now → Get a Quote →Caravan Finance FAQs
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Estimates only. Actual finance subject to lender approval. This is general information, not financial or tax advice. Always confirm the current write-off status with the ATO or a registered tax adviser.