As 30 June fast approaches, many Australian small and medium businesses are focused on tax compliance and reporting.
However, according to Moneytech Head of Group Sales & Distribution Reece Ketu, the end of the financial year (EOFY) is also a critical window to reassess finance strategies and position for growth.
“EOFY isn’t just about reconciling the past – it’s a strategic opportunity to optimise your financial structure for the year ahead,” says Mr Ketu.
“Whether it’s replacing underperforming equipment, expanding your fleet, or improving productivity through new technology, asset finance can be a powerful tool when used proactively.”
One key advantage of investing in assets before 30 June is the potential to claim the federal government’s $20,000 instant asset write-off. For eligible businesses with an aggregated turnover under $10 million, this allows for an immediate tax deduction on the full cost of each qualifying asset under $20,000, provided it is first used or installed by 30 June 2025. The threshold applies per asset, enabling multiple purchase write-offs.
This threshold is changing from 1 July 2025 to just $1000, marking a significant change to asset-related tax policy and creating a narrow window to act before the current benefit expires.
“Time is running out to take advantage of this generous write-off before it effectively disappears,” says Mr Ketu.
“For many SMEs, this may be the last chance to maximise tax outcomes while upgrading essential assets.”
Beyond tax
But the benefits extend well beyond tax. With ongoing credit constraints, rising operating costs, and lingering supply chain delays, many businesses are turning to asset finance as a more agile way to fund growth, preserve cash flow and stay competitive, says Moneytech.
“Businesses need the ability to move quickly when the right asset becomes available, and to finance it in a way that aligns with their revenue cycles,” says Mr Ketu.
“We’re seeing growing demand for tailored finance solutions that do more than fund machinery or expand fleet, they support broader capital and cash flow needs.”
Act now
With a week left of the financial year, Mr Ketu says now is the time for SMEs to conduct a comprehensive review of their finance arrangements.
“Don’t just focus on what you need to buy. Look at the finance terms you’re currently locked into. Are they still competitive? Is your old equipment costing you more than it’s worth?” he says.
“Renegotiating or refinancing existing asset finance could unlock cash and operational efficiency without the need for large upfront investment.”
