Why EOFY is a good time to look at asset finance

Discover why EOFY is the optimal time for Australian SMEs to pursue asset finance. Learn about tax benefits, vendor discounts, and strategic timing advantages.

The end of financial year represents far more than a compliance checkpoint for Australian small and medium enterprises. With interest rates having stabilised after a period of significant volatility, and equipment suppliers preparing to clear inventory, the weeks leading to June 30 present a unique convergence of opportunities for strategic asset investment.

For SMEs planning equipment upgrades, vehicle purchases, or technology investments, EOFY timing can deliver immediate tax advantages while positioning businesses for stronger performance in the year ahead. The combination of vendor incentives, tax benefits, and stable financing conditions creates compelling reasons to act before the deadline.

Here are five strategic advantages that make EOFY the optimal time for Australian SMEs to pursue asset finance.

Capitalise on aggressive EOFY vendor pricing

Equipment suppliers and vehicle dealerships across Australia traditionally offer their most competitive pricing in the weeks leading to June 30. With sales targets to meet and new inventory arriving in July, vendors frequently reduce prices by 10-15% to clear existing stock.

This seasonal pricing strategy creates significant opportunities for SMEs to secure high-value assets at reduced costs:

• Manufacturing equipment purchases can benefit from substantial end-of-year clearance pricing
• Commercial vehicle dealerships offer competitive terms to meet sales targets
• Technology upgrades become more affordable with vendor incentive programs
• Office equipment suppliers clear inventory with attractive discount packages

The timing works particularly well for businesses that have been planning major purchases. Rather than paying full retail prices earlier in the year or waiting until the new financial year when pricing returns to standard levels, acting during the EOFY period allows you to capture both the immediate cost savings and the tax benefits.

Vehicle dealerships are especially motivated during this period, as they balance manufacturer incentives with their own year-end inventory management requirements. For SMEs planning fleet upgrades or expansion, this represents an ideal window to negotiate favourable terms while accessing competitive financing options.

Maximise current tax deduction opportunities

The Australian government’s extension of the $20,000 instant asset write-off until June 30, 2025, provides eligible SMEs with powerful tax planning opportunities. Businesses with annual turnover under $10 million can immediately deduct the full cost of eligible assets rather than depreciating them over several years.

This immediate deduction applies per asset, meaning businesses can write off multiple purchases during the current financial year. Whether you’re upgrading computers, purchasing machinery, or investing in commercial vehicles, each eligible asset under $20,000 can generate immediate tax relief.

For assets exceeding the instant write-off threshold, standard depreciation rules still provide valuable benefits:

• Small businesses can claim 15% of the asset’s value in the first year
• Subsequent years allow 30% deductions when using the small business depreciation pool
• Larger assets can be written off systematically over multiple years
• Depreciation benefits apply regardless of how the asset is financed

The timing of your asset finance settlement proves crucial for maximising these benefits. Assets must be purchased and installed ready for use before June 30 to qualify for deductions in the current financial year. Even if you only make one payment before the deadline, properly structured asset finance (such as a chattel mortgage) allows you to claim the available tax benefits immediately.

These deductions can significantly reduce your taxable income, improving cash flow at a time when many businesses are managing EOFY expenses and preparing for the new financial year.

Lock in stable financing rates

After a period of significant interest rate volatility, Australia’s financing environment has stabilised, providing SMEs with greater certainty around borrowing costs. Securing asset finance before June 30 allows businesses to lock in current rates before any potential adjustments in the new financial year.

This rate stability represents a marked change from the uncertainty that characterised much of the recent rate hiking cycle. For SMEs planning major asset investments, current conditions offer an opportunity to secure financing with greater confidence in long-term budgeting and cash flow planning.

The predictability extends beyond just interest rates. With established financing terms locked in place, businesses can better forecast their monthly commitments and integrate these costs into their broader financial planning for the coming year.

Given that asset finance typically involves multi-year terms, securing favourable rates now can generate substantial savings over the life of the loan. Even small differences in interest rates can compound significantly over time, making current market conditions particularly attractive for SMEs ready to invest in growth-supporting assets.

Strategic asset investments for growth positioning

Making strategic asset investments before EOFY positions your business to begin the new financial year with enhanced operational capabilities. Rather than starting July with aging equipment or insufficient capacity, businesses that act during EOFY can hit the ground running with upgraded infrastructure.

Recent data shows that Australian businesses are embracing this approach, with machinery and equipment investment rising 11.6% in the March quarter of 2025. This represents the strongest quarterly increase since December 2009, indicating widespread recognition of the benefits that strategic asset investment can deliver.

The operational advantages begin immediately and include:

• New equipment typically operates more efficiently, reducing maintenance costs
• Updated vehicles can lower fuel expenses while reducing downtime
• Technology upgrades often streamline processes and enhance customer service
• Modern assets improve workplace safety and employee satisfaction
• Reliable equipment reduces the risk of costly operational disruptions

These improvements compound over time, meaning businesses that invest before EOFY gain months of additional benefit compared to those who defer decisions until the new financial year. In competitive markets, this operational edge can translate directly into improved profitability and market position.

The psychological benefits also matter. Teams working with modern, reliable equipment typically demonstrate higher morale and productivity. Customers often notice when businesses invest in quality assets, interpreting this as a sign of stability and commitment to service excellence.

Enhanced cash flow management and planning

EOFY asset finance supports broader cash flow management strategies by allowing businesses to spread major asset costs over manageable monthly payments while preserving working capital for operational needs.

This approach proves particularly valuable during EOFY periods when businesses often face concentrated expenses related to tax obligations, staff bonuses, and annual service contracts. Rather than depleting cash reserves for major asset purchases, structured financing maintains liquidity while still capturing tax benefits and vendor discounts.

Different financing structures offer varying advantages depending on your business circumstances:

• Chattel mortgages provide ownership benefits with tax-effective monthly payments
• Equipment leases offer flexibility with potential upgrade options at lease end
• Hire purchase arrangements combine ownership goals with structured payment terms
• Operating leases can provide off-balance-sheet benefits for certain business structures

The key lies in aligning your financing choice with both immediate cash flow requirements and longer-term business objectives. Professional advice can help identify the most suitable structure for your particular situation and asset types.

Strategic EOFY asset finance also strengthens your balance sheet heading into the new financial year. Modern, productive assets support stronger business valuations while demonstrating commitment to operational excellence. This enhanced financial position can prove valuable for future financing applications or business development opportunities.

Take action before the deadline

The convergence of vendor discounts, tax benefits, and stable financing conditions creates a compelling case for EOFY asset finance action. However, successful implementation requires early planning and professional guidance.

Settlement timelines vary depending on asset types and financing structures:

• Simple equipment purchases may settle within 1-2 weeks
• Vehicle finance typically requires 2-3 weeks for completion
• Complex machinery installations may need 3-4 weeks
• Custom equipment orders require additional lead time for delivery

Documentation requirements, credit assessments, and asset delivery all factor into the timeline, making immediate action advisable for businesses wanting to capture EOFY benefits before the June 30 deadline.

The window for 2025 EOFY advantages closes on June 30, making this a time-sensitive opportunity. Rather than hoping for similar conditions in future years, businesses positioned to invest in growth-supporting assets should act while current benefits remain available.

Professional asset finance specialists can guide you through the process, helping identify suitable assets, optimal financing structures, and timing strategies that maximise both immediate and long-term benefits.

For Australian SMEs ready to strengthen their operational capabilities while capturing significant financial advantages, EOFY asset finance represents an opportunity that combines immediate tax relief with strategic business positioning. Contact Attain loans today to explore how EOFY asset finance can support your business growth objectives while delivering tangible financial benefits before the June 30 deadline.

Further questions

This is general information only and is subject to change at any given time. Your complete financial situation will need to be assessed before acceptance of any proposal or product.