The end of financial year (EOFY) is one of the most important times for Australian businesses to review their asset finance position. The instant asset write-off allows eligible businesses to immediately deduct the full cost of qualifying assets in the year of purchase — and equipment finance is one of the most effective ways to act before the June 30 deadline.
What Is the Instant Asset Write-Off?
The instant asset write-off allows eligible businesses to claim an immediate tax deduction for the full cost of a depreciating asset in the income year it was first used or installed. As of the 2024–25 income year, the threshold is $20,000 per asset for businesses with aggregated turnover under $10 million. This means if you purchase a $20,000 machine before June 30, you can deduct the full $20,000 this financial year — rather than depreciating it over several years.
Always confirm the current threshold and eligibility rules with your accountant before acting — the rules have changed frequently.
Can I Claim the Write-Off on Financed Equipment?
Yes — and this is a key point many business owners miss. You don't need to purchase the asset outright to claim the instant asset write-off. Under a chattel mortgage, you take ownership of the asset from day one, which means you can claim the full deduction even though you're making repayments over 3–7 years. The write-off is based on the purchase price, not what you've paid to date.
The EOFY Timing Problem — and How to Solve It
To claim the write-off, the asset must be purchased, delivered and first used (or installed ready for use) before June 30. Lenders also get very busy in May and June — processing times slow as applications flood in. If you're planning to finance equipment before EOFY, the practical deadline to start your application is late May to mid-June at the latest.
- Apply with a broker in May — get pre-approved before you find the asset
- Confirm the asset can be delivered and ready-to-use before June 30
- Ensure the finance structure (chattel mortgage) supports the ownership claim for the write-off
- Speak to your accountant to confirm your business turnover qualifies
What Assets Qualify?
The instant asset write-off applies to most tangible depreciating assets used for business purposes, including trucks, excavators, trailers, forklifts, CNC machines, agricultural equipment, IT equipment and business vehicles. Certain assets are excluded — check with your accountant for the full eligibility list.
GST Benefit Under Chattel Mortgage
Under a chattel mortgage, GST-registered businesses can also claim the full GST component of the purchase price as an input tax credit in the purchase period — typically worth 1/11th of the asset price. This is a separate benefit from the instant asset write-off and provides an additional cash flow advantage.
Overdrive Funding helps businesses move quickly at EOFY. We compare 80+ lenders and can have approvals back in 4–24 hours for straightforward applications. Don't leave your EOFY finance to the last week — contact us now.