What It Costs to Import Machinery into Australia, and How to Fund It
Equipment Finance
Importing machinery · Customs and biosecurity · Supplier funding
The overseas supplier quote is only the start. An Australian machinery import can also create freight, insurance, duty, GST, biosecurity, port, delivery, rigging, electrical, safety, commissioning, currency and finance costs before the machine has produced anything. This guide follows the decision from before the deposit is paid, through supplier funding and customs, to Australian compliance, commissioning and the rescue options if the finance plan breaks.
Quick Answer
Importing machinery into Australia costs more than the overseas supplier quote because customs, tax, biosecurity, freight, port, delivery, compliance, installation and finance costs can all fall due before the machine earns revenue.
There is no reliable fixed percentage to add to the purchase price. The total depends on the machine's tariff classification, origin, Incoterm, freight size and route, biosecurity treatment, Australian delivery, site works, compliance requirements and how much of the project a lender will recognise as fundable value.
Customs clearance is not the same thing as permission to operate the machine in an Australian workplace. If you have not paid the deposit yet, start with what to check before committing. If the supplier balance is due but the funding has changed, go to what to do when the finance plan breaks. If the machine has landed, use the post-clearance checklist and the Australian compliance section.
Also called importing machinery into Australia, imported machinery finance, import equipment finance, overseas machinery supplier finance, or machinery landed-cost finance.
Start where you are in the import
- Not ordered yet: start with the checks before paying the deposit.
- Deposit or progress claim due: go to paying and financing the overseas supplier.
- Supplier balance due but the lender is short or not ready: go to the stage-by-stage rescue options.
- Ready to ship: check the Incoterm and biosecurity status before loading.
- On the water: work through duty, GST and border charges and deferred GST timing.
- Valuation came back low: go to the valuation-gap options.
- Landed but stuck: go to the post-clearance blockers.
- Delivered but not ready to switch on: go to Australian plant and electrical compliance.
How much does it cost to import machinery into Australia?
There is no single percentage or Australian benchmark for the total cost of importing machinery, because the final number combines the overseas purchase with freight, border, biosecurity, local-delivery, installation and finance costs that vary by machine and site.
The most useful way to budget is not to ask for one landed-cost percentage. Build the project from the supplier contract through to the first production run, and mark every line as known, quoted, conditional or still unresolved. That catches the costs that are invisible when the supplier first asks for a deposit.
| Cost line | When it applies | Who confirms the number |
|---|---|---|
| Supplier price | Always | The overseas supplier contract or proforma invoice |
| Origin transport, packing and export handling | Depends on the Incoterm and supplier quote | Supplier and freight forwarder |
| International freight | Usually | Freight forwarder or carrier after final packed dimensions and weight are known |
| Marine or transit insurance | Where arranged | Insurer or freight provider |
| Customs duty | Only where a duty rate applies after classification and any preference or concession | Licensed customs broker or ABF tariff advice |
| Import GST | Generally on taxable importations unless the GST is deferred under an approved scheme | Customs broker and accountant, using the statutory GST base |
| Import Processing Charge | Where an import declaration attracts the charge | Australian Border Force |
| Biosecurity declaration charge | For Full Import Declarations over the threshold by air or sea | Australian Border Force on behalf of DAFF |
| Biosecurity inspection, cleaning or treatment | Conditional on the machinery and what officers find | DAFF and the approved treatment or inspection provider |
| Customs broker and forwarding fees | Usually | Your broker and freight forwarder |
| Port, terminal, storage and detention | Depends on shipment and delays | Carrier, terminal, shipping line and forwarder |
| Australian delivery and oversize access | Depends on size, weight, route and destination | Transport operator and, where relevant, road access authorities |
| Rigging, electrical, guarding and commissioning | Where required before production | Rigger, electrician, installer, safety specialists and supplier |
| Foreign exchange and finance cost | Where supplier payments are in foreign currency or funding is used | Foreign exchange provider, bank and finance provider |
Which import questions is this page not answering?
The words "import" and "machinery" pull in several unrelated questions. 4 of them come up often enough to name, because landing on the wrong one wastes a week.
| What you are actually doing | Why it is a different question |
|---|---|
| Importing a vehicle for road use | Road vehicles run through a separate approval and compliance regime before they can be registered, and the finance follows a different path. This page is about production and business machinery |
| Importing stock, components or raw materials to resell or consume | Goods that turn over are funded on the purchasing cycle and repaid when the stock sells. That is trade, inventory or working capital funding, not equipment finance |
| Buying an imported machine from an Australian dealer | The dealer is the importer. You are buying domestically from a supplier who has already cleared customs and biosecurity, so there is no landed-cost problem and no pre-landing security gap. That is ordinary equipment finance |
| Importing used or auction-bought plant from overseas | This page does apply, but read the biosecurity explained and valuation explained sections first. Used machinery carries the heaviest inspection risk and the thinnest Australian resale comparables |
Is there a benchmark percentage to add to the machinery price?
No. Customs duty can be zero, concessional or payable depending on classification and origin. Freight depends on the machine's packed dimensions and route. Biosecurity cost depends on the condition of the machinery and what inspection finds. Rigging and electrical work depend on the Australian site. A percentage that ignores those variables can look precise while being wrong.
That is why the supplier price and the lender valuation are different numbers. The supplier price tells you what the machine costs to buy. The project budget tells you what it costs to get it producing in Australia. The valuer is asking what the machine itself is worth in the Australian market.
What should you check before paying an overseas machinery deposit?
Before paying an overseas machinery deposit, confirm the import, border, delivery, site and finance assumptions while you still have the power to change the order. The expensive mistakes are usually locked in before the container moves.
| Check before you commit | Why it can become expensive later | Who should verify it |
|---|---|---|
| Exact machine, build specification and supplier | Wrong specifications, vague invoices or supplier fraud are hardest to fix after money leaves Australia | Supplier, independent inspection provider where appropriate, and your own due diligence |
| Whether it is new, used or field-tested for biosecurity | A machine sold as new can be treated as used if testing exposed it to soil, plant or animal material | DAFF BICON conditions and your freight or customs team |
| Asbestos and prohibited-material risk | Machinery and parts can be detained, tested or seized if prohibited asbestos is suspected or found | Supplier evidence, competent testing where required, and ABF or ASSEA guidance |
| Australian tariff classification | The code drives duty, concessions and some border requirements | Licensed customs broker or ABF Tariff Advice |
| Country of origin and concession evidence | Shipping from an FTA country does not automatically prove preferential origin | Customs broker and ABF origin rules |
| Incoterm and named place or port | It decides which freight, export and delivery costs are inside the supplier price and which remain yours | Supplier contract and freight forwarder |
| Final packed dimensions and weight | A small dimensional change can move cargo into flat-rack, break-bulk, heavy-lift or oversize transport | Supplier and freight forwarder |
| Australian route and site access | The machine can clear the port and still be unable to reach or enter the site | Transport operator, rigger and road access authority where relevant |
| Power, services, guarding and commissioning | A machine can be delivered but remain unable to operate | Electrician, installer, safety adviser and supplier |
| Warranty, spare parts and local technical support | A cheap machine can create expensive downtime if commissioning or parts support is weak | Supplier and local service partners |
| Payment milestones and currency | Deposit, progress and pre-shipment balance dates determine the working-capital and FX exposure | Supplier contract, finance broker and licensed foreign exchange provider |
| Finance amount and valuation basis | The lender may not recognise every landed-cost line as asset value | Finance broker, lender and valuer before a large non-refundable deposit is committed |
How do you reduce supplier and build risk before sending money offshore?
Separate the question "is the supplier real?" from "will the finished machine match the contract?" Verify the supplier independently, tie payments to objective milestones, and make the specification, factory acceptance test, serial or build identification, documentation, warranty and delivery evidence part of the written deal. A bank transfer only proves money moved. It does not prove the machine exists or meets the agreed specification.
Where the supplier relationship or first order creates enough risk, ask your bank, trade-finance provider or solicitor whether a letter of credit, escrow arrangement, independent inspection or controlled milestone release is appropriate. Those tools manage transaction risk. They do not replace the separate decision about how the purchase will ultimately be financed.
If the deposit has already been paid
Do not treat the deal as too late to structure. Map the remaining supplier balance, currency, freight, border cash, likely valuation and site costs now. The amount already paid may form part of your contribution to the project, but the lender will still assess the remaining exposure and the machine's supported value.
Can machinery be stopped because it contains asbestos?
Yes. Australia prohibits the unlawful importation of asbestos and goods containing asbestos, and machinery, machinery parts, construction plant and agricultural equipment appear in Australian border detection data. The Asbestos and Silica Safety and Eradication Agency says importers are responsible for adequate risk assessment, and a simple overseas supplier declaration may not be enough where the goods are at risk. ABF can require sampling and testing at the owner's expense.
Source: Asbestos and Silica Safety and Eradication Agency, Preventing prohibited imports and Asbestos detections at the border, read 28 August 2026.
For the finance file, the same pre-order discipline applies to the quote. An itemised machine, supplier, delivery, installation and payment schedule is easier to assess than one bundled total. See the manufacturing machinery quote checklist before sending the deposit.
Does imported machinery need biosecurity inspection or cleaning in Australia?
Imported machinery must arrive clean and free from biosecurity risk material, and used machinery in the categories covered by DAFF is subject to mandatory on-arrival inspection. A machine sold as new can also be treated as used if field testing or factory trials exposed it to soil, plant or animal material.
- New and kept clean: still subject to biosecurity control and possible inspection, so keep it protected from soil, seeds, insects and contamination during storage and loading.
- New but field-tested or factory-trialled with soil, plant or animal exposure: DAFF treats it as used machinery.
- Used machinery in covered industries: mandatory on-arrival inspection applies, so clean concealed areas before shipment and make them accessible for inspection.
- Contaminated on arrival: cleaning or treatment, reinspection, export from Australia or destruction can become possible outcomes at the importer or owner's expense.
DAFF says biosecurity risks include soil, mud, seeds, insects, animal material and plant material. If contamination is found, directed action at the importer or owner's expense can include cleaning or treatment, reinspection, export from Australia or destruction. That creates a cost chain that often includes port time and storage as well as the treatment itself.
A practical pre-shipment question is therefore not just "is it used?" but "has it been exposed?" A new earthmoving machine trialled outdoors in muddy conditions can enter the used-machinery pathway even though it has never been sold to another owner.
How do you check BICON before importing machinery?
Search BICON for the specific machinery, its condition and the intended import scenario before shipment. The applicable pathway tells you whether an import permit, treatment, inspection, cleaning or supporting documentation is required. If BICON says a permit is required, DAFF says the permit must be granted before the goods arrive in Australia, so a pending application is not the same thing as approval.
If a permit is required, DAFF currently charges a $135 electronic application charge plus an upfront initial assessment fee of $82 to $655 depending on the assessment category. Additional assessment charges can apply if the work exceeds the included assessment period. Those are permit-application charges only. They do not replace any inspection, treatment, storage, port or transport costs that may arise on the actual consignment.
Sources: Department of Agriculture, Fisheries and Forestry, importing motor vehicles, motorcycles, tyres and machinery, machinery cleanliness requirements, BICON import permits and charges for import permits, read 28 August 2026.
How are customs duty, GST and import charges calculated on machinery?
Customs duty is driven by the Australian tariff classification and any applicable preference or concession, while import GST is generally 10% of the value of the taxable importation rather than 10% of the supplier invoice alone.
For machinery, the GST base normally includes the customs value, any customs duty payable, and the amount paid or payable for international transport and insurance to the place of consignment in Australia. That is why a freight or duty change can also move the GST amount.
| Charge | Current amount | When it applies |
|---|---|---|
| Electronic Import Processing Charge | $0 up to $1,000; $50 above $1,000 and under $10,000; $152 at $10,000 or more | Import declaration by sea, air or post |
| Documentary Import Processing Charge | $90 above $1,000 and under $10,000; $192 at $10,000 or more | Documentary import declaration |
| Biosecurity Full Import Declaration charge - air | $48 | Air consignments over $1,000 |
| Biosecurity Full Import Declaration charge - sea | $71 | Sea consignments over $1,000 |
Source for the charge table: Australian Border Force, Import Processing Charges and biosecurity cost recovery charges, read 28 August 2026.
What documents should be ready before the machinery reaches Australia?
Have the commercial invoice, packing list, bill of lading or air waybill, technical description and serial or model information ready early. Keep the final tax invoice and clearance documents together, because the funder will want them at settlement and your accountant will want them at lodgement. Add origin evidence if a preferential duty rate is being claimed, and any permit, cleaning, treatment or biosecurity documents that apply to the machine or its packaging. The customs broker should not be discovering the machine's classification or missing documents after the vessel has arrived.
Which exchange rate does customs use?
The customs conversion and the rate your business actually pays the supplier are not necessarily the same thing. Your commercial cost changes when the Australian dollar moves between deposit, progress and final payments, while customs applies its own statutory conversion rules for the customs value. Budget both rather than assuming one exchange rate controls the whole project.
GST basis: Australian Taxation Office, GST and imported goods. Customs exchange-rate guidance: Australian Border Force, exchange rates. Read 28 August 2026.
Can a tariff concession or trade agreement reduce the duty on machinery?
Yes, potentially. Machinery is not one duty-rate category, and the amount payable can change because of tariff classification, preferential origin under a trade agreement, or an applicable Tariff Concession Order.
| Mechanism | What it does | What has to be true |
|---|---|---|
| Tariff classification | Sets the starting customs treatment and general duty rate | The machinery must be correctly classified under the Australian tariff |
| Free trade agreement preference | Can provide a preferential rate of duty | The goods must satisfy the agreement's rules of origin and evidence requirements |
| Tariff Concession Order | Can allow duty-free entry for goods covered by an applicable TCO | The goods must match both the tariff classification and the TCO description precisely |
| Formal Tariff Advice | Gives advance ABF classification advice for a specific good from a specific manufacturer | Apply before import with enough technical information for ABF to classify the goods |
ABF says there are approximately 15,000 existing Tariff Concession Orders. To claim one, the imported goods must be classifiable to the tariff classification to which the TCO is keyed and must precisely match the TCO description. A TCO should not be assumed from a loose keyword match.
If classification materially changes whether the machine is worth buying, solve it before the deposit. ABF's Tariff Advice System gives advance classification advice for specific goods from a specific manufacturer and states a normal service standard of 30 days, although it can take longer.
Free trade agreement treatment is a separate test. The fact a machine ships from China, the United Kingdom, Japan or another agreement country does not by itself establish preferential origin. The goods must satisfy the applicable rules of origin and documentation requirements.
Sources: Australian Border Force, Tariff Concession Orders, Tariff Advice System and Origin Advice, read 28 August 2026.
How does the deferred GST scheme change cash flow on an imported machine?
The Deferred GST Scheme can move import GST from the border-clearance cash requirement to the approved importer's monthly BAS, but it does not defer customs duty and it only works when the business is eligible and approved.
| Issue | Normal import GST | Approved Deferred GST Scheme |
|---|---|---|
| When GST is accounted for | Generally through the import clearance process | On the monthly BAS under the scheme |
| Customs duty | Still payable where applicable | Still payable where applicable. The scheme defers GST, not duty |
| BAS frequency | Can be quarterly or monthly depending on the business | Monthly BAS reporting is required |
| If you currently report quarterly | No change just because you import | The switch to monthly reporting must take effect before the deferral can operate |
| If approval is not in place when the machine arrives | GST follows the ordinary import process | You cannot assume a pending application removes the clearance-week GST payment |
ATO eligibility includes holding an ABN, being registered for GST, lodging BAS online, paying electronically and lodging monthly. A business that currently lodges quarterly must change to monthly reporting before applying, and the ATO notes that the change takes effect from the start of the next quarter. That timing matters if the machine is already being built or is on the water.
Whether changing the whole business to monthly BAS reporting makes sense is an accounting decision, not a finance-broker decision. The finance question is narrower: if GST will still be payable at clearance, is the cash already allocated or is it included in the funding plan?
Source: Australian Taxation Office, Deferred GST Scheme, read 28 August 2026.
What do EXW, FOB and DDP change about what you have to fund?
EXW and FOB change where the supplier's responsibility and cost stop and yours begin. They do not remove Australian customs, biosecurity, tax, port, delivery or workplace obligations.
| Term | What the supplier commonly handles | What the Australian buyer still needs to map |
|---|---|---|
| EXW - Ex Works | Makes the goods available at the named supplier premises | Collection, export handling, main freight, insurance, Australian border costs, delivery and installation unless separately arranged |
| FOB - Free On Board | Export clearance and delivery onto the vessel at the named port | Main sea freight onward, insurance if desired, Australian border costs, delivery and installation |
| CIF - Cost, Insurance and Freight | Seller arranges cost, insurance and freight to the named destination port under the contract | Australian import clearance, taxes, biosecurity, destination charges, local delivery and installation still need to be checked |
| DDP - Delivered Duty Paid | Seller takes the maximum Incoterms responsibility, including import clearance and applicable duties and taxes to the named place | Who is the Australian importer for GST purposes, biosecurity and asbestos responsibilities, lender documentation, unloading, site access, installation and workplace compliance |
The important words are not only EXW, FOB, CIF or DDP. Read the named place or port and the version of Incoterms written into the contract. A supplier can say "delivered" conversationally while the formal contract still leaves destination charges, unloading, site access or installation to you.
Does a DDP machinery quote mean the supplier handles everything in Australia?
No. Under Incoterms 2020, DDP puts the maximum transport and import-clearance obligation on the seller, including import duties and applicable taxes to the named place. But it does not automatically solve the Australian buyer's GST-credit position, biosecurity evidence, asbestos risk, finance documentation, unloading, installation or workplace duties.
ATO guidance says a business claiming a GST credit on a taxable importation must be the importer for GST purposes, which requires more than simply having its name appear somewhere in the transaction. If a DDP structure is being proposed, confirm with the customs broker and accountant who will be treated as importer, who is named as owner on the import declaration and whether the GST credit is actually available to the Australian business before relying on that GST in the cash-flow model.
Sources: ICC, Incoterms 2020 DDP explanatory notes and Australian Taxation Office, claiming GST credits for goods you import, read 28 August 2026.
For finance, the Incoterm changes the size and timing of the facility. An EXW price can look much lower than another supplier's quote simply because more of the transport chain sits outside it. Compare the two suppliers at the same point in the journey, not invoice against invoice.
How do you pay and finance an overseas machinery supplier before shipment?
An overseas machinery supplier is often paid in stages before the asset reaches Australia, so the funding has to match the supplier's deposit, progress and pre-shipment milestones rather than waiting for an ordinary local asset-finance settlement.
- Business-funded deposit: starts the build quickly but can drain working capital and leave the valuation question until later.
- Staged imported-machinery facility: can fund agreed supplier deposits and progress claims where the lender accepts the structure and evidence.
- Letter of credit: can reduce documentary payment risk between buyer and supplier, but it is not automatically the same as long-term asset finance.
- Escrow or controlled release: can make supplier payment conditional on milestones, but it still needs a source of funds and can add administration.
Who is the importer if a finance company pays the overseas supplier?
Do not assume the funder becomes the Australian importer just because it sends the supplier the money. The importing entity, the entity named in the customs process, the entity claiming any GST credit and the entity holding Deferred GST approval need to be deliberately aligned with the transaction. Confirm that structure with the customs broker and accountant before shipment rather than trying to repair an entity mismatch at clearance.
When does each payment fall due, and what can it be secured against?
Reading the right-hand column of the table below is the fastest way to understand why importing machinery is funded differently to buying it locally. The security only arrives at the last row. Every payment before it is made against a machine an Australian lender cannot yet register an interest in.
| Payment point | When it falls due | What an Australian lender can secure against it |
|---|---|---|
| Deposit on order | On acceptance of the proforma invoice, before the build starts | Nothing in Australia. The assessment is on the business |
| Progress claims during the build | Against build milestones, over the lead time in the contract | Nothing in Australia. The assessment is on the business |
| Balance before shipment | When the machine is complete, before the supplier releases it to the forwarder | Still nothing in Australia, even though the machine now physically exists |
| Freight and marine or transit insurance | On booking or on arrival, depending on the Incoterm explained agreed | Nothing. The goods are in transit |
| Duty, GST, import and biosecurity charges | At clearance, generally before the goods are released | Nothing yet. The goods have arrived but are not released |
| Delivery, rigging and commissioning | After clearance, once the machine is on its way to site | The machine, once it is delivered and a security interest is registered on the PPSR register |
Payment sequence describes the ordinary commercial shape of an imported capital equipment purchase and the security position at each point. Actual payment terms are set by your supply contract and actual credit outcomes depend on lender policy and your circumstances at the time of application. Indicative, not an offer.
If you paid the deposit from your own cash, that money is not lost to the deal. It is your equity contribution, and the amount still needing funding is the remaining project cost, not the whole machine. Business owners routinely assume that having spent their own money first has weakened their position. It has not. How the claims themselves are staged and certified against a build schedule is covered in progress payments on a custom build.
Is this equipment finance or trade finance?
If the business is importing a machine it will keep and use for years, the long-term funding question is equipment or asset finance. If it is importing stock, raw materials or components to sell or consume in the trading cycle, the funding question is normally working capital, inventory or trade finance. A letter of credit can sit inside the payment process without changing what the underlying asset is.
Searching for this will mostly return the wrong answer. Ask how to pay an overseas supplier before shipment and what comes back is letters of credit, trade finance and international money-transfer services. Those are real products and they solve half the problem: they get the money to the supplier, safely and in the right currency. What they do not do is provide it. A letter of credit is an undertaking to pay, not a facility that supplies the funds, and a transfer service moves cash you already hold. If the cash is the constraint rather than the mechanism, the product you want is asset finance structured to pay a supplier in stages.
On imported-machine files we place, one workable structure is a staged facility that pays agreed supplier claims during the build and later moves into the post-delivery asset-finance structure. Other lenders or transactions may use a separate pre-shipment facility and a second asset-finance approval. The important question is whether the post-delivery exit is agreed before you become committed to the supplier.
If you are dealing with a custom build, map every milestone before the first payment. The custom machinery progress-payment guide covers the deposit, mid-build and completion sequence in more detail.
How should you handle the currency risk on supplier payments?
Record the supplier currency and due date for every milestone in the same schedule as the finance drawdowns. A fall in the Australian dollar increases the Australian-dollar cost of an unhedged foreign-currency payment, so the final project contribution can move even if the supplier's foreign-currency price is unchanged.
A licensed foreign exchange provider should advise on hedging products. The finance job is to make sure the facility size and payment timetable do not quietly assume an exchange rate that may no longer exist when the final balance falls due.
Source for the currency-risk principle: Reserve Bank of Australia, Foreign Currency Exposure and Hedging in Australia, 16 March 2023, read 28 August 2026.
Can machinery finance include freight, duty, GST and installation?
The general shape of the product is covered in the equipment finance guide; this section is about which import-specific costs can sit inside it. Sometimes, but you should not assume every project cost is automatically financeable just because it is necessary to get the machine running. Lenders can treat the machine, soft costs, taxes, site works and working-capital needs differently.
| Project cost | How it is commonly treated | What to ask before relying on finance |
|---|---|---|
| Machine purchase price | Core asset cost | What value and advance basis will the lender use? |
| Freight and insurance | May be considered as ancillary import cost | Is it fundable in this facility or must it be paid from cash? |
| Customs duty and GST | Can create a large short-term cash requirement | Will the facility fund it, will GST be deferred, or is separate working capital needed? |
| Rigging and commissioning | May be considered if clearly itemised and tied to the asset | Will the lender fund it even if the valuer does not add the same amount to asset value? |
| Electrical upgrades, slab works or building modifications | Often sit outside pure asset value | Do these need a separate business or property-backed facility? |
| Training, software and service contracts | Treatment varies significantly | Are these included, excluded or capped? |
The safest approach is an itemised cost schedule that separates the asset from freight, tax, delivery, rigging, electrical work, software, training and building works. That lets the lender say yes, no or separately funded to each line before the supplier balance becomes urgent.
For the borrower-side file, use the manufacturing equipment finance documents checklist. For a broader view of structures, see the equipment finance options.
What changes for the lender when the machinery lands in Australia?
Delivery strengthens the lender's practical asset-backed position because the machinery can be identified, valued and brought into the Australian security and settlement process, but it is too absolute to say a lender can take no security before the machine arrives.
- Before delivery: the lender may rely more on business cashflow, supplier documents, payment milestones and broader security available under the deal.
- After delivery: the machine can be identified and valued in Australia and can become a more practical part of the secured position.
- Security registration: the correct PPSR structure depends on the legal arrangement. All-PAAP can cover future property, and a PMSI can apply to purchase-money security where the requirements are met.
- Repayments: some import facilities capitalise part of the pre-delivery period and then move into the agreed term repayment structure after delivery.
The PPSR recognises All Present and After-Acquired Property registrations that can cover current and future personal property, and purchase-money security interests can apply where money is lent to fund the purchase of goods and the legal requirements are met. Machinery can also be registered in the appropriate tangible-property class.
So the commercial distinction is this: before delivery, the lender may rely more heavily on the business, supplier documents, milestones and broader security. After delivery, the machine itself becomes a more practical part of the recovery and valuation picture. The exact security package depends on the legal documents and lender structure.
Source: Personal Property Securities Register, collateral type and class and PMSI guidance, read 28 August 2026.
Where the post-delivery structure is a chattel mortgage, the chattel mortgage guide explains that facility separately. Whether the contract lands as a lease, a rental or a chattel mortgage changes the tax and balance sheet treatment, which is worked through in lease, rental or chattel mortgage.
Why can imported machinery be valued below what you paid?
Imported machinery can be valued below the project cost because the business pays for many things that do not become resale value in the machine itself, including freight, tax, insurance, installation and building works.
The gap can be wider on custom or specialised machinery, used or auction purchases, foreign-currency deals, and equipment with few Australian comparables. Ask the valuer or lender which basis is being used. Market value, forced-sale value and liquidation assumptions can produce materially different risk views on specialised plant.
- Increase the cash contribution where the gap is affordable without stripping the working-capital buffer needed for clearance and ramp-up.
- Separate asset finance from working-capital costs where the machine value supports one amount but GST, freight or site works need another structure.
- Use a lender with a different asset appetite where the specialised machine has a defensible use and resale story, without assuming another lender will ignore a genuine value gap.
- Add acceptable broader security where appropriate and commercially justified.
- Renegotiate the project before shipment if the unsupported cost is large enough to make the order uneconomic.
Illustrative valuation-gap scenario
A business orders a machine for an Australian-dollar equivalent of $300,000. Freight, border costs and installation take the whole project to $370,000, but the lender supports an asset value of $290,000. The issue is not that the other $80,000 was not genuinely spent. The issue is that project cost and resale value answer different questions.
The correct response is to work out, before the final supplier balance is due, which part of the gap can be financed separately and which part must remain the business's contribution. Figures are illustrative only.
The landed cost versus valuation guide and the overseas supplier deposit risk guide go deeper on this exact failure point.
What can you do if the deposit is paid but the machinery finance plan breaks?
If the supplier balance, valuation, freight, GST or settlement timing changes after a non-refundable deposit has been paid, separate the shortfall by stage. A pre-shipment supplier payment, a clearance-week tax bill and a post-arrival valuation gap are different problems and may need different funding structures.
From our broking: stage-by-stage rescue map
| Problem now | Structures that may be considered | What has to be resolved first |
|---|---|---|
| Supplier wants the final balance before shipment | A staged imported-machinery facility, trade or import finance, a letter of credit where the supplier accepts it, a business working-capital facility, or broader-security commercial funding where appropriate | Supplier contract, milestone evidence, amount already paid, machine identity, remaining build risk and the planned post-delivery exit |
| The lender approved the machine but excluded freight, duty, GST or site costs | Separate working capital, approved Deferred GST for GST only, a different facility that accepts ancillary costs, or a larger borrower contribution | An itemised cost schedule showing the exact cash requirement and which costs are asset value versus project or working-capital costs |
| The Australian-dollar project cost increased because the exchange rate moved | Resize the facility if serviceability and policy allow, increase the cash contribution, renegotiate a supplier milestone, or manage remaining currency exposure with a licensed FX provider | The actual remaining foreign-currency amount and due date, not the exchange rate used when the original quote was prepared |
| The valuation is below the purchase price or landed cost | Asset finance to the supported amount plus separate working capital or broader-security funding, an alternative lender with suitable asset appetite, additional acceptable security, or a larger cash contribution | Whether the gap is caused by soft costs, specialised resale risk, currency, condition or a genuine overpayment for the machine |
| The machine lands before the long-term facility is ready | Complete outstanding lender conditions urgently, use available working capital, or consider a short-term facility only where the total cost and a realistic refinance or repayment exit are clear | The exact clearance deadline, duty and GST cash, port or storage exposure, final valuation, lender conditions and the date a longer-term facility can actually settle |
These are possible structures, not a recommendation and not a promise that finance will be available. A short-term or property-backed facility should not be used simply to rescue an uneconomic machine purchase. The exit, total cost and remaining working-capital buffer have to make sense before replacing one deadline with another.
The practical rule is to stop treating the amount already paid as the reason to keep committing. Rebuild the transaction from today's position: money already paid, supplier balance still due, landed costs still unfunded, supported machine value, site costs, production date and the cash the business needs after commissioning.
If the problem is specifically the valuation, use the landed cost versus valuation guide. If the problem is that the non-refundable supplier deposit is already gone, use the overseas supplier deposit risk guide.
What still has to happen after customs clearance before the machine can start production?
Customs clearance is not the finish line. The machine can be legally released at the border and still be days or weeks away from production because road access, rigging, electrical work, workplace-safety duties, commissioning or training are not ready.
| Step | Who is usually involved | What can delay it |
|---|---|---|
| Port or terminal release | Customs broker, forwarder, carrier and terminal | Outstanding charges, biosecurity holds, documents, storage or detention |
| Road delivery | Heavy transport operator and road access authorities where relevant | Oversize dimensions, route restrictions, permits, pilots, escorts or site access |
| Unload and position | Rigger, crane provider and site team | Door height, turning room, crane reach, floor or slab capacity and lifting points |
| Electrical, air and services | Electrician and relevant trades | Voltage, switchboard capacity, compressed air, extraction, cooling or other utilities |
| Guarding and safe-use requirements | Importer, supplier, installer and safety specialists | Machine modifications, missing information, guarding, isolation or registration requirements |
| Commissioning and operator training | Supplier, local agent and production team | Technician availability, software, calibration, spares and training |
For oversize or overmass movements, the transport operator may need to use an approved network, operate under a notice or obtain a permit. NHVR says route planning and third-party approvals can be part of that process, and Western Australia and the Northern Territory use their own road transport authorities for relevant access applications.
Workplace use is a separate question from customs release, so treat Australian compliance as its own workstream rather than assuming it was dealt with by the customs broker or freight forwarder.
Road-access source: National Heavy Vehicle Regulator, Oversize Overmass access, read 28 August 2026.
Illustrative post-arrival failure
The machine clears customs on time, but the final packed dimensions require a different road-delivery plan and the factory switchboard cannot carry the additional load. The freight leg succeeded and the import legally cleared, yet storage, transport rescheduling and site works still delay production.
This is why Australian delivery, site access and services belong in the pre-order budget rather than in a checklist written after the vessel docks.
If the machine is already at the port and you cannot clear it
Identify the exact blocker first: customs documents, duty or GST cash, biosecurity direction, carrier or terminal charges, finance conditions, or transport. Get the customs broker, freight forwarder and finance side working from the same written list. Storage and detention can continue while separate parties each assume somebody else is fixing the hold.
For the site side, see Factory Install Readiness.
The consignment is held and you cannot clear it yet
Deal with the clock before you deal with the credit. A held consignment accrues storage from a free period that started on arrival, so the first 3 calls are not to a broker.
- Your licensed customs broker. They know where the consignment sits and what is holding it. A hold for a classification query, a biosecurity direction and a hold for want of money are 3 different problems with 3 different fixes.
- Your freight forwarder and the shipping line. They set the free period and the storage charges, and they are the only people who can tell you how long you have.
- Your accountant. If deferred GST approval is already in place, the GST is not payable at the border at all and the amount you need is much smaller. If it is not in place it cannot be applied for now, because approval has to be granted before the goods arrive.
A biosecurity hold is its own category and is not solved with money. If the machine has arrived unclean, or without a required permit granted, the consignment may face inspection, cleaning, treatment, storage or reinspection. That is a pre-shipment problem being discovered too late, which is exactly why the cleanliness and BICON checks belong before the machine is loaded rather than after it docks.
Once you know what is genuinely due, the finance question is narrow: duty, GST, charges and accrued storage can sometimes be funded alongside the machine rather than out of working capital, but arranging that under time pressure at the wharf is slower and gives you less room than arranging it before the vessel sails.
Can imported machinery be legally switched on and used in Australia?
Not automatically. Customs and biosecurity clearance allow the machinery to enter Australia, but they do not certify that it is safe or compliant for use in an Australian workplace. The importer, installer and business controlling the plant can have separate duties before the machine is commissioned.
Safe Work Australia says a business that gets plant directly from overseas can take on importer and supplier duties. Importers must, so far as is reasonably practicable, ensure the plant is without health and safety risks, or minimise those risks where that is not possible, and obtain and pass on information about proper use and hazards. Its importer guidance specifically points to inspection, testing and, where appropriate, third-party verification as ways to establish that imported plant is safe.
- Guarding and hazardous movement: check access to moving parts, interlocks, emergency stops, isolation points and the safe operating method before production.
- Electrical connection: confirm the machine's supply, switchboard capacity, protection and installation requirements with an appropriately licensed electrical professional in the destination state or territory.
- Plant or design registration: certain plant and plant designs require registration under the applicable WHS regime. Do not assume registration is irrelevant just because the machine was legally imported.
- Electrical equipment rules: where imported electrical equipment is in-scope and is being supplied into an EESS participating jurisdiction, Responsible Supplier, registration, evidence-of-compliance and RCM obligations can apply. EESS is not a blanket approval system for every industrial machine, so first determine whether the relevant equipment is actually in scope.
- Instructions and technical information: collect the manuals, risk information, electrical drawings, conformity evidence, maintenance instructions and commissioning records that the Australian installer and workplace need.
- Modifications after arrival: if the Australian business substantially modifies the plant, additional designer or manufacturer duties can arise. Get the safety and engineering review done before the modification becomes the commissioning plan.
The pre-payment question to ask
Do not ask only whether the supplier can build the machine. Ask who in Australia will sign off the electrical connection, guarding, plant registration where applicable and commissioning, what evidence that person needs from the manufacturer, and whether the machine can meet those requirements without expensive redesign after arrival.
Sources: Safe Work Australia, Guide for importing and supplying safe plant, plant supply, design and registration, and Electrical Equipment Safety System, manufacturers and importers as Responsible Suppliers, read 28 August 2026.
For the physical site side, see Factory Install Readiness. The legal requirements can differ by state and territory, so use the relevant regulator and qualified professional for the actual machine and site.
What does imported machinery finance cost?
Imported machinery finance can cost more during the pre-delivery stage than ordinary asset finance because the lender is exposed before the machine is available as practical Australian asset security, so pricing has to be read together with the build period, drawdowns and post-delivery structure.
From our broking, indicative only
The pricing below is from one non-bank imported-machinery facility we currently place. It is not a market-wide rate card, not a quote and not an offer.
| Annual business turnover | Indicative commission-inclusive rate | Important qualifier |
|---|---|---|
| More than $10 million | About 11.95% per annum | Observed on the facility we use, not a market-wide rate and not an offer |
| $1.5 million to $10 million | About 14.95% per annum | Observed on the facility we use, with actual pricing affected by the file, asset and pre-delivery exposure |
| $250,000 to $1.5 million | About 16.95% per annum | Observed on the facility we use; below $250,000 turnover this particular category generally does not apply |
- The facility is commonly structured around a five-year transaction term.
- Interest can be capitalised across part of the build and shipping period, with the exact period depending on the transaction.
- Ancillary import costs can be considered alongside the machine, but each cost line still needs to be itemised and accepted under lender policy.
- Actual pricing can change with the strength of the business, asset, amount advanced before delivery, security and how long the pre-delivery exposure runs.
Indicative only, based on deals we have placed and the facility settings available to us as at 28 August 2026. Not a quote, not an offer and not a prediction of the terms you will receive. Actual terms depend on lender policy and your circumstances at the time of application.
Do not compare import facilities on headline rate alone. Compare the total amount advanced before delivery, capitalised interest, fees, whether GST and other costs are included, whether there is a second credit decision after landing, and what happens if the build or shipping schedule slips.
Importing machinery into Australia is really five linked decisions. Importability asks whether the machine, its condition and its materials can enter Australia. Cost asks what falls outside the supplier price. Funding asks how deposits, progress claims, border cash and installation are paid before the machine earns anything. Compliance asks whether the delivered machine can actually be connected, commissioned and used under the Australian rules applying at the site. Execution asks whether the machine can leave the port, reach the factory and start producing on the planned date.
The most expensive failures happen when one of those decisions is left until the previous one has become irreversible. If the finance changes after the deposit is paid, rebuild the transaction from the current position instead of assuming the original facility can still absorb every new cost.
Key takeaway: do the border, valuation, finance, delivery and Australian compliance work before the non-refundable supplier payment, not after the machine is on the water.Frequently Asked Questions
There is no single percentage or fixed benchmark. The total can include the supplier price, origin handling, freight, insurance, customs duty where applicable, import GST, import and biosecurity charges, customs clearance, port costs, Australian delivery, rigging, electrical or safety work, commissioning, foreign exchange costs and finance. Used or contaminated machinery can also incur inspection, cleaning, treatment, storage or reinspection costs.
Maybe. There is no single duty rate for machinery. The amount depends on the Australian tariff classification and can also change if a preferential free trade agreement rate or a Tariff Concession Order applies. Confirm the classification and any concession before relying on a duty figure in your budget.
Import GST rules is generally 10% of the value of the taxable importation. For machinery, that is normally the customs value plus any customs duty payable plus international transport and insurance to the place of consignment in Australia. It is not simply 10% of the overseas supplier invoice.
Used machinery in the categories covered by the Department of Agriculture, Fisheries and Forestry is subject to mandatory on-arrival inspection and must arrive clean and free from biosecurity risk material. Machinery sold as new can be treated as used if it has been field tested or factory trialled in a way that exposed it to soil, plant or animal material. Check the current BICON conditions before shipment.
Yes. Australia prohibits the unlawful importation of asbestos and goods containing asbestos. Machinery, machinery parts, construction plant and agricultural equipment have appeared in Australian border detection data. Importers are responsible for adequate risk assessment and may need evidence or testing rather than relying only on a supplier declaration.
Yes, some business and imported-machinery facilities can fund an overseas supplier deposit or staged progress payments before shipment. The structure is different from ordinary local asset finance because the machine may not yet be in Australia, so the lender assesses the business, supplier contract, payment milestones, available security and the planned post-delivery finance structure.
Sometimes. Import-related costs such as freight, insurance, duty, GST where it is not deferred, delivery, rigging and commissioning can be considered in some facilities, but lender policy and valuation treatment vary. Itemise every cost rather than assuming the lender will finance the entire landed cost just because it is part of the project.
EXW generally leaves the buyer responsible from the supplier's premises onward. FOB generally has the seller handle export clearance and delivery onto the vessel before the buyer takes over the main freight leg. DDP puts the maximum Incoterms import and delivery obligation on the seller to the named place, but the Australian buyer still needs to confirm GST, biosecurity, finance, unloading, installation and workplace-compliance consequences.
Because the amount you spend is not the same thing as the machine's Australian resale value. Freight, duty, GST, insurance, rigging and building works can increase your project cost without increasing what a valuer thinks the machine itself would sell for. Currency movements, custom specifications, used condition and a thin Australian resale market can widen the gap further.
First separate the shortfall by stage. A pre-shipment supplier balance, unfunded freight or GST, a currency movement, a low valuation and a machine that has landed before finance settles are different problems. Possible structures can include a revolving equipment line that pays overseas suppliers in stages, staged imported-machinery finance, trade or working-capital finance, a larger cash contribution, a separate broader-security facility or short-term finance with a clear, dated exit. Availability depends on the business, security, asset, timing and lender policy.
Not automatically. Customs and biosecurity clearance do not certify workplace or electrical compliance. An Australian business importing plant directly can take on importer duties, and the machine may need safety review, guarding, electrical work, plant or design registration where applicable, testing, commissioning and supporting technical information before use. EESS and RCM obligations can also apply to in-scope electrical equipment being supplied in participating jurisdictions.
Before paying the deposit, confirm the exact machine and supplier, tariff classification, origin and possible concessions, BICON and biosecurity treatment, asbestos risk, payment milestones, Incoterm, packed dimensions and freight plan, Australian delivery route, site access, power and safety requirements, warranty and local support, and how the lender will treat the machine value and the costs outside the asset price.
Primary Sources
- Department of Agriculture, Fisheries and Forestry, importing vehicles and machinery, read 28 August 2026.
- Department of Agriculture, Fisheries and Forestry, machinery cleanliness requirements, read 28 August 2026.
- Australian Border Force, import processing and biosecurity cost recovery charges, read 28 August 2026.
- Australian Border Force, Tariff Concession Orders, read 28 August 2026.
- Australian Border Force, Tariff Advice System, read 28 August 2026.
- Australian Taxation Office, GST and imported goods, read 28 August 2026.
- Australian Taxation Office, Deferred GST Scheme, read 28 August 2026.
- Asbestos and Silica Safety and Eradication Agency, preventing prohibited imports, read 28 August 2026.
- Personal Property Securities Register, collateral type and class, read 28 August 2026.
- Safe Work Australia, plant supply, design and registration, read 28 August 2026.
- National Heavy Vehicle Regulator, Oversize Overmass access, read 28 August 2026.
- Reserve Bank of Australia, Foreign Currency Exposure and Hedging in Australia, published 16 March 2023, read 28 August 2026.
- Department of Agriculture, Fisheries and Forestry, BICON import permits, read 28 August 2026.
- Department of Agriculture, Fisheries and Forestry, charges for import permits, read 28 August 2026.
- Australian Taxation Office, claiming GST credits for goods you import, read 28 August 2026.
- Safe Work Australia, Guide for importing and supplying safe plant, read 28 August 2026.
- Electrical Equipment Safety System, manufacturers and importers as Responsible Suppliers, read 28 August 2026.
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