Increased investment drives surge in business productivity

Recent CommBank Asset Finance data indicates that nearly nine in 10 Australian firms (88 per cent) have seen output increase by more than 10 per cent following recent asset investments.

The impact was most significant among larger corporations, with over half reporting productivity gains of between 20 per cent and 50 per cent, driven by the transition to more efficient, modern equipment.

The findings point to steady investment activity across the economy, with approximately 68 per cent of companies entering new asset finance arrangements over the past year.

The Commbank data showed that the appetite for new machinery was particularly high at the end of 2025, driven by a desire to secure better pricing and newer models ahead of the new year.

Investment in agricultural machinery increased 116 per cent over a 12-month period, while investment in manufacturing and industrial equipment rose 76 per cent.

Firms also spent money on new retail and office fitouts, with investment in fitouts up 64 per cent. Businesses also increased investment in technology assets by 48 per cent and investment in trucks by 18 per cent.

Renee Theodor, general manager of asset finance at CBA, said that while December typically saw a seasonal uptick, activity in 2025 was at a "much higher level".

Theodor added that businesses were increasingly focused on securing upgraded equipment to improve work readiness for the coming year.

“The end of the year is often an attractive time to purchase, with suppliers offering incentives to move existing stock ahead of new model launches. This allows businesses to secure better pricing and begin the new year with upgraded equipment ready for work,” she said.

Investment and demand for asset finance were expected to continue rising in 2026, according to CBA.

Theodor said more businesses were planning investments in hybrid and electric vehicles, earthmoving equipment and office technology this year as they focused on productivity and efficiency.

The CBA research indicated that almost one-third of companies have taken a strategic approach to fleet upgrades, specifically seeking productivity gains through improved vehicle efficiency.