EOFY 2026 Equipment Finance: May Is Your Final Window to Act

The $20,000 instant asset write-off is confirmed until 30 June 2026. From 1 July, the threshold drops back to $1,000. That is a reduction of 95 per cent, overnight. And with May now underway, the window to act is closing fast.

For any Australian operator planning to purchase a truck, excavator, trailer, tractor, forklift, loader, or any other eligible asset, the clock is running. May is your final safe window to lodge an application and still guarantee settlement before 30 June.

What the Instant Asset Write-Off Actually Means

Under the scheme, small businesses with aggregated annual turnover under $10 million can immediately deduct the full cost of eligible assets costing less than $20,000 in the 2025–26 financial year, rather than depreciating the asset over several years.

That means a $19,500 asset purchased and in use before 30 June 2026 could generate a $5,850 tax saving for a business on the 30% company tax rate, in this financial year alone.

The Rule Most Operators Miss

This is where businesses get caught out every year.

It’s not enough to simply order or purchase the equipment before 30 June. Under ATO rules, the asset must be first used or installed ready for use by 30 June 2026.

That means:

• Equipment sitting in a box in your yard does not qualify
• Machinery awaiting commissioning by a technician does not qualify
• An asset ordered but not yet delivered does not qualify

The ATO is clear: the asset must be operational and available for its intended business purpose before the financial year ends.

Working Backwards from 30 June: Why May Is Your Last Chance

Here’s the timeline that catches operators off guard:

• Straightforward applications (strong financials, established ABN, clean credit): allow a minimum of 10 business days from application to settlement
• Low doc or complex structures (trusts, multiple directors, asset age issues): allow 15–20 business days
• Equipment delivery and commissioning: add 1–3 weeks depending on supplier and asset type

Working backwards from 30 June: a straightforward application needs to be lodged by mid-June at the absolute latest. Low doc or complex applications need to be submitted by late May, which means right now. Every week of delay in May increases the risk of missing the deadline entirely.

The other reason timing matters: lender volumes spike sharply in May and June. Credit teams get flooded, turnaround times blow out, and some lenders stop taking new applications for EOFY settlement altogether. Applying now in May means you still have a genuine chance. Waiting until June means competing with every other operator who left it too late, and some lenders will stop accepting new EOFY applications altogether.

Finance Structure Matters: Chattel Mortgage Qualifies, Finance Lease Does Not

Not all finance structures qualify for the instant asset write-off. The critical distinction is ownership:

• Chattel mortgage: you take ownership of the asset from day one. Qualifies for the write-off.
• Hire purchase: you own the asset at the end of the term. Generally qualifies.
• Finance lease: the lender retains ownership. Does NOT qualify for the instant asset write-off.

If the instant asset write-off is part of your EOFY strategy, make sure your broker structures your finance as a chattel mortgage or hire purchase, not a lease.

What Assets Are Eligible

Eligible assets for most operators in transport, construction, agriculture, and earthmoving include:

• Trucks, prime movers, tipper trucks, crane trucks
• Trailers and semi-trailers
• Excavators, loaders, dozers, skid steers
• Tractors, harvesters, farm equipment
• Forklifts, telehandlers, scissor lifts

Assets must be new or second-hand, used predominantly for business purposes, and must not be on the ATO’s excluded asset list (which includes items like horticultural plants and certain intangible assets).

Keep Your Documentation Clean

The ATO applies strict documentation requirements for instant asset write-off claims. Keep:

• The supplier invoice showing purchase price and date
• Delivery dockets or commissioning records confirming the asset was in use before 30 June
• Finance contract showing the chattel mortgage or hire purchase structure
• Business use records (logbooks, job records) if there’s mixed personal and business use

Apply Now in May: Before Lenders Close Their EOFY Books

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