Quick answer
You can finance a RAM 1500, Silverado 1500 or F-150 through your business, usually with a chattel mortgage. The tax catch is payload: these 1500-series pickups are commonly rated to carry under one tonne, so the ATO's car limit — $69,883 for 2026–27 — can cap your depreciation and GST credit, even though luxury car tax often doesn't apply. Heavy-duty 2500 and 3500 models are a different case.
Key points
- Check the GVM and kerb weight on the compliance plate. GVM minus kerb weight gives the payload, and that number decides most of the tax treatment.
- A vehicle built to carry under one tonne and fewer than nine passengers is a car for the car limit, which caps depreciation and the GST credit ($69,883 and $6,353 for 2026–27).
- Luxury car tax and the car limit use different tests. Many big pickups avoid LCT as goods-carrying vehicles and still sit under the car limit.
- Heavy-duty 2500 and 3500 models can have a GVM above 4.5 tonnes, which needs a light rigid licence.
- Lenders finance remanufactured right-hand-drive pickups routinely. Grey or private imports need to show they're on the Register of Approved Vehicles.
Yes, you can finance a RAM 1500, Chevrolet Silverado 1500 or Ford F-150 through your business. Lenders write them on a chattel mortgage like any other work vehicle. The surprise is at tax time. Most 1500-series pickups are rated to carry less than one tonne, so the ATO’s car limit can cap your depreciation and your GST credit, even when the dealer hasn’t charged luxury car tax.
Buyers get caught because they hear “it’s a commercial vehicle, so it’s all deductible” in the showroom. That’s half right. Here’s the other half, and what to check before you sign.
Why does payload matter so much?
Nearly every tax rule for a work vehicle comes back to one question: what was it designed to carry? You work that out from the compliance plate:
Payload = gross vehicle mass (GVM) − kerb weight
A car, for car limit purposes, is a vehicle designed to carry a load of less than one tonne and fewer than nine passengers. Plenty of mid-size utes clear the one-tonne mark comfortably. Full-size American pickups often don’t, which surprises people given how big they are. A lot of their GVM goes on the truck’s own weight: big petrol V8s or diesel engines, heavy four-wheel-drive running gear and five-seat cabins.
Some recent figures show how close the line is. Motoring press reported that the 2026 Silverado 1500 was re-certified in Australia with its GVM lifted from 3,300 kg to 3,505 kg. Even after that change, the reported payload of the top LTZ Premium variant was still under 1,000 kg. CarExpert lists the RAM 1500 at a 3,505 kg GVM. Every variant and model year is different, so check the plate on the exact vehicle you’re buying, not the brochure for the range.
How does the car limit hit a big pickup?
If your pickup counts as a car, the car limit caps two things:
- Depreciation. The ATO says the business portion of a car’s cost can only be depreciated up to the car limit, and the excess can’t be claimed under any other rule (ATO — instant asset write-off and the car limit). For 2026–27 the car limit is $69,883.
- The GST credit. On a car, the most you can claim is one-eleventh of the car limit, which is $6,353 for 2026–27. That’s the ceiling whatever the pickup costs (ATO — purchasing a motor vehicle).
The instant asset write-off doesn’t change any of this. It covers assets costing less than $20,000 for businesses with aggregated turnover under $10 million, and a new full-size pickup costs several times that. See our instant asset write-off guide for what does qualify.
| 1500-series pickup with payload under 1 tonne | Pickup or ute with payload of 1 tonne or more | |
|---|---|---|
| Car limit on depreciation | Applies | Generally doesn’t apply |
| GST credit | Capped at one-eleventh of the car limit | Business portion of the full GST |
| Luxury car tax | Often not charged if it’s a goods-carrying vehicle | Usually not charged |
| FBT on private use | Depends on design and use | Limited private use may be exempt |
General guide only. Your accountant confirms the treatment for your specific vehicle.
So why isn’t luxury car tax charged?
Because LCT and the car limit use different definitions. It’s the most common mix-up we hear.
The ATO says LCT doesn’t apply to a commercial vehicle designed mainly for carrying goods rather than passengers (ATO — when LCT doesn’t apply). It sets out its detailed approach in a determination, LCTD 2023/1. That approach looks at the vehicle’s design as a whole, and commonly cited summaries describe a comparison of passenger-carrying capacity (seats × 68 kg) with load-carrying capacity. A five-seat pickup with 800-odd kilograms of payload can pass that test as a goods vehicle. The same pickup still falls short of one tonne for the car limit.
So you can end up with a pickup that’s a goods vehicle for LCT and a car for depreciation and GST. Neither the dealer nor the brochure is wrong. They’re answering different questions. The dealer handles LCT and builds it into the price. The car limit only shows up when your accountant does your return. Our luxury car tax explainer covers the thresholds and formula if your vehicle does attract it.
Want to know how a lender would look at the pickup you’ve got your eye on? Run it past us in 60 seconds. Tell us the model, the variant and whether it’s new, demo or used.
What about the 2500 and 3500 heavy-duty models?
Heavy-duty pickups such as the RAM 2500 and 3500 or the Silverado HD are built for bigger loads and heavier towing. Their payloads can clear one tonne, which may take them outside the car limit. But check the plate here too.
The bigger practical issue is the licence. In Victoria, a car licence covers vehicles up to 4.5 tonnes GVM. Above that, up to 8 tonnes, you need a light rigid (LR) licence, and you must have held a car licence for at least a year to get one (Transport Victoria — heavy vehicle licence categories). Other states set similar categories. If staff will drive the vehicle, every one of them needs the right class, and so does your insurance policy.
Lenders don’t mind which model you choose. They do want the vehicle to suit the business, and an HD truck bought for a fifth-wheeler holiday van won’t pass the business-purpose test.
What changes when the company owns it: FBT
If a sole trader buys the pickup, private use simply reduces the business-use percentage. If a company or trust owns it and a director or employee drives it privately, fringe benefits tax can come into play.
The ATO allows limited private use of a ute or other eligible vehicle to be exempt, typically driving home and minor, infrequent private trips. Dual-cab pickups aren’t automatically eligible, though. Eligibility depends on the vehicle’s design and on how it’s actually used across the FBT year. A pickup that tows the family boat most weekends is unlikely to qualify. The rate is 47% for FBT years up to 31 March 2027, so it’s worth checking first. See FBT on business vehicles and keep a proper business-use logbook.
How do lenders look at a full-size pickup?
From the finance side, these are high-value vehicles, and lenders treat them like any other premium work vehicle. They look at:
- Fit with the business. A builder towing an excavator float or a farmer running horse floats has an easy story. A sole trader with modest turnover buying a top-spec variant will get more questions about serviceability.
- How it reached the Australian market. Remanufactured right-hand-drive pickups sold through franchised dealers are routine for lenders. A private or grey import needs more evidence. A used import generally has to be on the Register of Approved Vehicles before it can be registered (Department of Infrastructure — RAV), and lenders will usually want to see that entry.
- Seller and security. Dealer, private or auction all work. On a private sale, the lender wants a clear PPSR search and pays the seller (or their financier) directly. See dealer vs private sale.
- Structure. Most owners choose a chattel mortgage, so the business owns the pickup from day one and claims the GST credit on the next BAS. A balloon can lower repayments. Just keep it realistic for a vehicle that may rack up big towing kilometres.
Accessories also matter. Tonneau covers, tub liners, bull bars, towing packs and aftermarket GVM upgrades are often financeable if they’re invoiced with the vehicle. But accessory weight eats into usable payload, and an aftermarket upgrade doesn’t automatically change how the vehicle was originally designed for tax purposes. Ask your accountant before you rely on an upgrade to clear the one-tonne line.
An illustrative example: two builders, two pickups
Illustrative only. These are made-up businesses, not clients, and the figures are rounded.
Two Queensland builders each buy a full-size pickup through their companies in the same month.
Builder A buys a RAM 1500 at a dealer. The compliance plate gives a payload under a tonne. LCT isn’t charged, but the accountant applies the car limit. Depreciation is capped at $69,883 of the cost, and the GST credit tops out at $6,353. The director drives it home and to sites, with occasional private stops. The accountant reviews whether the FBT exemption applies, and the director keeps a logbook either way.
Builder B needs to tow a heavy plant trailer and buys a heavy-duty model with a payload above one tonne. The car limit doesn’t apply, so the business claims GST on the business portion of the full price. The GVM is over 4.5 tonnes, though, so two of the crew who’ll drive it need light rigid licences. Builder B organises those before delivery.
Both settle on a chattel mortgage with a modest balloon. The finance is the easy part. Knowing the payload figure before signing is what kept both builders’ tax returns free of surprises.
Before you sign: a five-point check
- Photograph the compliance plate and work out the payload (GVM − kerb weight).
- Ask the dealer in writing whether LCT applies to that exact variant.
- Have your accountant confirm the car limit, GST and FBT treatment for your entity.
- Check the GVM against your drivers’ licence classes.
- For a used import, confirm the Register of Approved Vehicles entry and run a PPSR search.
The business vehicle finance planner can help you compare structures before you talk numbers.
Ready to put the right pickup on the right finance?
A full-size pickup is a serious tool for builders, farmers and anyone who tows for a living, and it’s a serious purchase. We look at pickup finance every week, including remanufactured trucks, heavy-duty models, demo stock and private sales.
Telling us about the pickup takes about 60 seconds, and simply asking won’t leave a mark on your credit file. There’s no credit check until you decide to apply. We don’t send your details to a pile of lenders, so your phone won’t start ringing with strangers. A real person who knows vehicle finance looks at your business, the truck and how you’ll use it, then calls you to talk through options.
Please fill the form in accurately: the model, the variant, the price, and whether it’s new or used. That way we can match the right structure and lender the first time.
Frequently asked questions
Is a RAM 1500 subject to the car limit?
Usually, yes. The car limit applies to vehicles designed to carry less than one tonne and fewer than nine passengers. Most 1500-series pickups sold here are rated to carry less than a tonne, so check the compliance plate: GVM minus kerb weight. If the result is under 1,000 kg, expect your accountant to apply the car limit to depreciation and the GST credit.
Does luxury car tax apply to a RAM 1500 or Silverado?
Often not. The ATO says LCT doesn't apply to a commercial vehicle designed mainly for carrying goods rather than passengers, and many full-size pickups are sold on that basis. The dealer works out LCT, so ask them to confirm the position for the exact variant before you sign. Remember that LCT and the car limit are separate tests.
Can I claim the full GST on a pickup bought for my business?
Only if the vehicle sits outside the car limit. If it's a car under the one-tonne test, the GST credit is capped at one-eleventh of the car limit, which is $6,353 for 2026–27, however much the pickup costs. You can only claim the business-use portion either way.
Can I write off a RAM 1500 with the instant asset write-off?
Not a new one. The instant asset write-off covers assets costing less than $20,000 for businesses with aggregated turnover under $10 million. Full-size pickups cost several times that, so they're depreciated over time instead, within the car limit if it applies.
Will a lender finance a privately imported pickup?
Some will, but expect more questions. Lenders want to know the vehicle is legally supplied to the Australian market, which for a used import usually means it appears on the Register of Approved Vehicles. They'll also want a clear PPSR search, a valuation and proof the conversion was done properly. Remanufactured pickups sold through franchised dealers are far simpler.
Does my company pay FBT if I drive the pickup on weekends?
It might. Limited private use of a ute or other eligible vehicle can be exempt, but dual-cab pickups aren't automatically eligible, and regular weekend or family use usually falls outside the exemption. If the company owns the vehicle, have your accountant check the design and your actual use before the FBT year closes on 31 March.
Can I put a balloon on a RAM or Silverado chattel mortgage?
Usually, yes. Full-size pickups have tended to hold their value, which makes a balloon workable. Size it sensibly, though. Towing kilometres, modifications and a crowded used market can all pull resale value down by the time the balloon falls due.