EOFY Equipment Purchases: Five Questions to Consider Before Buying

MAY 2026

As the end of financial year approaches, many business owners begin reviewing planned equipment purchases and investment opportunities for the year ahead.

For eligible small businesses, the instant asset write-off may provide an opportunity to immediately deduct the cost of certain assets, making EOFY a common time to bring forward purchases.

However, timing alone should not drive the decision.

Before committing to an equipment purchase, here are five questions worth considering to ensure the investment supports both your business operations and broader financial position.

1. Does the Business Need This Equipment Now?

The starting point is always the commercial benefit.

A tax deduction can reduce taxable income, but it does not remove the cost of the purchase itself. The strongest investments are typically those that improve productivity, replace ageing equipment, create efficiencies, or support future growth.

If the purchase would still make sense outside the year end period, it may be worth exploring further. If the tax deadline is the main driver, it’s worth pausing to reassess.

2. Will the Purchase Qualify for the Instant Asset Write-Off?

Eligible small businesses with aggregated turnover below $10 million may be able to immediately deduct the cost of eligible assets under $20,000 each.

The threshold applies on a per asset basis, meaning multiple eligible purchases may qualify individually.

Assets costing $20,000 or more generally fall into the small business depreciation pool rather than qualifying for an immediate deduction.

As eligibility requirements can vary, seeking advice before purchasing is recommended.

3. Will the Asset Be Ready for Use Before 30 June?

One of the most commonly overlooked requirements is timing.

To qualify this financial year, the asset must not only be purchased but also first used, or installed and ready for use, before 30 June.

For items such as laptops, tools or office equipment, this may be relatively straightforward. Larger purchases, however, may involve delivery delays, installation requirements or commissioning periods.

If a purchase involves lead times or setup requirements, planning ahead becomes particularly important.

4. Should the Purchase Be Funded with Cash or Finance?

Having cash available does not always mean paying upfront is the best approach.

Using working capital for a significant asset purchase can place pressure on cashflow and reduce flexibility should unexpected expenses arise.

Equipment finance may allow businesses to spread costs over time while preserving cash reserves for day-to-day operations and growth opportunities.

The most appropriate approach will depend on factors such as cash position, the size of the investment and broader end of financial year planning considerations.

5. How Does This Fit Within the Bigger Picture?

End of financial year purchases should not be viewed in isolation.

An equipment investment may influence cashflow, tax planning, financing decisions and future business objectives. Taking a broader view can help ensure the purchase aligns with where the business is heading, rather than simply responding to a tax deadline.

Coordinating purchase timing, finance structure and tax planning together often leads to stronger long-term outcomes.

Planning Ahead

End of financial year can be an appropriate time to review equipment needs and planned investment, but the focus should remain on making commercially sound decisions.

If you are considering a purchase before 30 June, discussing the opportunity early with your advice team can help ensure the timing, structure and tax implications align with your broader business goals.

Advice Disclaimer: This article is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making an investment decision in relation to a financial product (including a decision about whether to acquire or continue to hold).