Is Hiring Equipment Tax Deductible?
Here’s What You Should Know
When you’re running a business in construction, landscaping or earthmoving, every expense matters.
A question we get often here at ZELVi Equipment is:
“Can I claim my equipment hire costs on tax?”
The short answer is yes, in most cases you can. It’s worth knowing how it works so you can make the most of your deductions and keep your books clean.
Why Equipment Hire Is Usually Tax Deductible
If you’re hiring gear like excavators, rollers, dumpers or water carts for business use, the Australian Tax Office (ATO) generally sees those costs as a business expense. That means you can claim them as a tax deduction in the same financial year.
If you’re using the machinery to earn business income — the hire costs are usually claimable.
What You Can Claim
You can generally claim:
- Hire fees for the machinery and any attachments
- Delivery and collection costs
- Fuel or consumables (if they’re not already included in the hire rate)
- Insurance or damage waiver fees that form part of your agreement
At ZELVi, we keep it simple — all your hire costs are clearly itemised on your invoice, so your accountant has everything they need come EOFY.
What You Can’t Claim
There are a few exceptions. You can’t claim:
- Equipment used for personal projects
- Fines or penalties related to the equipment
- Refundable deposits
- Hire costs that aren’t directly linked to your business income
If you’re not sure about something, it’s always best to check with your accountant or tax advisor before making the claim.
Hiring vs Buying — Which Is Better for Tax?
When deciding whether to hire or buy, tax can be a big factor.
- Hiring gives you immediate deductions — you can claim the full amount in the same financial year.
- Buying equipment means you’ll claim depreciation over several years instead.
For many businesses, hiring makes more sense financially, especially if you only need the machine for certain jobs. Then you need to worry about long-term costs like maintenance, servicing, or depreciation.
Keep Good Records
To make tax time easy, always:
- Keep copies of your hire invoices and receipts
- Record what job the equipment was used for
- Be sure it’s business-related
We help make that process smoother by providing clear, detailed invoices for every hire.
The Takeaway
Yes — equipment hire is tax deductible when it’s used for business purposes. It’s one of the easiest ways to keep your costs down while having access to the gear you need to get the job done right.
Useful Links
Ready to Hire?
Explore our range of earthmoving equipment and get a quick online quote today.
