For Australian businesses, the end of the financial year is a smart time to consider asset finance. Whether you’re looking to invest in equipment, vehicles, or energy-efficient upgrades, there are clear financial advantages to making your move before June 30. Here are some things to consider.
- Take Advantage of EOFY Vendor Discounts
Many equipment suppliers and dealerships offer steep discounts at the end of the financial year. With sales targets to meet and new stock arriving in July, vendors often reduce prices by 10–15% to clear inventory. This creates an opportunity to secure high-value assets at reduced prices, improving your return on investment.
- Access Extra Tax Deductions on Green Assets
Businesses that invest in energy-efficient assets before June 30 may be eligible for an additional 20% tax deduction under the Small Business Energy Incentive. This applies to electric vehicles, solar systems, HVAC upgrades and other assets that lower energy use or emissions. Combined with standard depreciation rules, this can result in a 120% deduction which could significantly reduce your tax bill while upgrading your infrastructure.
- Benefit from Depreciation Rules Before the Cut-Off
While the temporary full expensing scheme has ended, small businesses with turnover under $10 million can still immediately write off individual assets costing less than $20,000. For more expensive items or larger businesses, standard depreciation rules still offer first-year deductions of 15%, and 30% in subsequent years when using the small business pool. These deductions apply to assets purchased and installed before June 30.
- Lock in Finance at Stable Rates
After a period of rate volatility, interest rates have stabilised. Securing asset finance before the end of the financial year means locking in current rates before any new-year adjustments. This gives you greater certainty for budgeting, improves cash flow planning, and could save you money over the loan term if rates increase later.
- Strengthen Your Balance Sheet for the New Year
Making strategic investments in new assets before EOFY can position your business for growth in the year ahead. Upgrading machinery, vehicles, or technology before June 30 means those assets can start contributing to your operations immediately, while you also take advantage of tax and pricing benefits this year rather than deferring them.
