EOFY Asset Finance Guide 2026: Maximise Your Tax Deductions Before June 30

Why EOFY Matters for Asset Finance

The Australian financial year runs from July 1 to June 30. Any tax deductions — depreciation, instant asset write-off, interest — must relate to assets that are installed ready for use or first used for a taxable purpose by June 30 to be claimed in that financial year.

This means if you've been thinking about buying a truck, excavator, ute, or piece of equipment — doing it before June 30 lets you:

• Claim the instant asset write-off (if eligible) in the current year's tax return
• Start depreciation from the current financial year
• Claim GST credits on your next BAS
• Reduce your taxable income before the tax return is due

Instant Asset Write-Off 2025–26

The instant asset write-off allows eligible small businesses to immediately deduct the business portion of an asset's cost, rather than depreciating it over several years.

Key Details

• Eligibility: Aggregated annual turnover under $10 million
• Asset threshold: Check the ATO for the current per-asset threshold (it has changed several times in recent budgets)
• Finance structure: Must use chattel mortgage (commercial goods loan) or hire purchase — you need to be the owner to claim
• Deadline: Asset must be first used or installed ready for use by June 30, 2026
• Business portion: Only the business-use percentage is deductible

Read our full Instant Asset Write-Off guide for current thresholds →

Depreciation Strategies for EOFY

Even if your asset doesn't qualify for the instant write-off, there are powerful depreciation strategies:

General Small Business Pool

Small businesses can add assets to a general pool and depreciate at 15% in the first year (using the simplified depreciation rules) and 30% in subsequent years. Since you only need the asset installed by June 30, even a late-June purchase gets the full 15% first-year deduction.

Diminishing Value Method

For larger businesses, the diminishing value method uses the formula: Base value × (days held ÷ 365) × (200% ÷ effective life). The fewer days held before June 30, the smaller the deduction in Year 1 — but it still beats waiting until next financial year.

Which Structure Allows Depreciation?

EOFY Asset Finance Checklist

Follow this timeline to ensure your deductions are secured:

Common EOFY Mistakes to Avoid

• Buying assets you don't need: Tax deductions only save you a percentage of the cost (your marginal tax rate). Don't spend $100,000 just to save $25,000 in tax — you're still out of pocket $75,000.
• Missing the "installed ready for use" rule: Settlement alone isn't enough. The ATO requires the asset to be delivered and operational by June 30. If it arrives in July, the deduction shifts to the next financial year.
• Wrong finance structure: Finance leases and operating leases don't qualify for depreciation or instant asset write-off. Use a chattel mortgage or hire purchase if these deductions matter.
• Forgetting the business-use percentage: For mixed-use assets (especially vehicles), only the business portion is deductible. Keep a logbook.
• Leaving it too late: Finance applications in the last week of June can be rushed and may result in less favourable terms. Start early.

Worked Example: $150,000 Excavator Before EOFY

A construction business (aggregated turnover $3M, GST-registered) finances a $150,000 (ex-GST) excavator via chattel mortgage in May, delivered June 15:

*Subject to current threshold eligibility. Illustrative only — consult your accountant. Without the instant write-off, Year 1 depreciation would be ~$22,500 (15% simplified pool).

FAQs

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