Short answer: For the 2026-27 financial year, equipment or vehicle finance generally needs to be settled and the asset first used or installed ready for use by 30 June 2027 for it to potentially count in that financial year’s tax return. Lender processing times, settlement conditions and supplier delivery schedules can all affect whether that deadline is realistically achievable, so it’s worth starting the process well before June.
Every EOFY, a wave of equipment finance applications lands on lenders’ desks in the final weeks of June, and a portion of them don’t settle in time. This guide covers the practical timing side of EOFY asset finance decisions for the 2026-27 financial year: what typically needs to happen and by when, not the detailed eligibility rules themselves, which are covered in our sibling guides linked below.
Why does settlement timing matter for EOFY asset finance?
Tax treatment of business assets generally depends on when the asset is first used or installed ready for use, not simply when it was ordered or when finance was approved. This means a piece of equipment financed and delivered in early July, even if the finance application was submitted in June, typically falls into the following financial year rather than the one you were targeting.
This distinction catches businesses out every year, particularly with imported equipment, custom-built plant, or vehicles with long dealer lead times. If a specific financial year outcome matters to your business’s tax position, it’s the delivery and installation date that counts, not the order date or the finance approval date.
What’s the instant asset write-off position for 2026-27?
Threshold and eligibility rules for instant asset write-off change frequently and can depend on legislation that is still moving through Parliament at any given time. As at the time of writing, further changes to the instant asset write-off threshold have been proposed for the 2026-27 financial year, but the exact position should always be confirmed against current ATO guidance before making a finance decision based on it, since proposed measures are not law until passed.
Rather than duplicate that detail here, our dedicated guides on instant asset write-off changes and how instant asset write-off works cover the threshold and eligibility rules in depth and are updated as the legislative position develops. This article focuses specifically on the practical timing decisions around settling finance before the 30 June cut-off, which apply regardless of exactly where the threshold lands. Always check the current position directly at ato.gov.au before finalising any purchase based on a specific tax outcome, and confirm your position with your accountant, since individual eligibility depends on turnover, asset type and how the asset is used in your business.
What’s a realistic cut-off for settling finance before 30 June?
Working backwards from 30 June, a few stages typically need to happen: application and approval, documentation and settlement, and then supplier delivery or installation. Each stage can take longer than expected in the lead-up to EOFY, when both lenders and suppliers are dealing with a seasonal surge in demand.
As a general guide, businesses planning an EOFY equipment purchase often start the finance process in April or early May for standard equipment with readily available stock, and earlier still, sometimes several months out, for custom-built, imported, or made-to-order assets with longer lead times. Leaving the application until the last week of June significantly increases the risk of missing the deadline, particularly if additional documentation or a valuation is required.
Should you buy before or after 30 June?
Not every purchase needs to happen before EOFY. If a piece of equipment isn’t urgently needed and the tax timing doesn’t materially change your position, waiting until July can sometimes be the more sensible choice, giving you more time to compare finance options and negotiate with suppliers without the seasonal rush. On the other hand, if a specific deduction or threshold genuinely changes the economics of the purchase, or if the equipment is needed operationally regardless of tax timing, settling before 30 June may be worth prioritising.
This is ultimately a decision best made with your accountant, factoring in your business’s overall tax position for the year, not just the asset purchase in isolation. A broker can help make sure the finance side of the equation is ready to move quickly once that decision is made, so timing pressure doesn’t end up driving the outcome by default.
Common EOFY timing mistakes
- Confusing order date with installation date: placing an order in June doesn’t guarantee the asset is ready for use by 30 June if delivery slips into July
- Underestimating lender processing time: approval volumes typically spike in June, which can extend standard turnaround times
- Not confirming supplier lead times upfront: some equipment categories have lead times of months, not weeks, particularly for imported or custom items
- Assuming a threshold applies without checking current guidance: instant asset write-off rules have changed multiple times in recent years, and assuming a prior year’s threshold still applies can lead to an incorrect tax position
- Leaving finance structuring decisions until the last minute: whether to buy outright, use a chattel mortgage, or lease an asset can affect the tax treatment, and this is worth discussing with your accountant well before June, not during it
Indicative EOFY finance timeline
The table below is a general planning guide, not a guarantee. Actual timeframes depend on the lender, asset type and completeness of documentation.
| Stage | Indicative timing before 30 June | Key risk if delayed |
|---|---|---|
| Confirm asset and supplier lead time | 3+ months out (longer for custom/imported assets) | Delivery slips past 30 June |
| Submit finance application | 4 to 8 weeks out | Approval delayed by seasonal demand |
| Documentation and settlement | 2 to 4 weeks out | Settlement conditions unresolved in time |
| Delivery and installation | Before 30 June | Asset not “ready for use” in the target financial year |
| Confirm tax treatment with accountant | Before committing to purchase | Incorrect assumption about eligible threshold |
Figures are indicative only and will vary by lender, asset and applicant.
If you’re weighing up whether to buy outright, finance through a business loan, or explore a low doc loan if your paperwork is limited, it’s worth comparing options early rather than under EOFY time pressure. Our business loan calculator guide can help you model repayments across different structures before you commit.
EOFY timing decisions are easy to get wrong under pressure. Contact TYG Finance early in the financial year, not just in June, to give your application the best chance of settling in time.
Frequently asked questions
Does the finance approval date determine which financial year an asset falls in?
Generally no. It’s typically the date the asset is first used or installed ready for use that matters for tax purposes, not the approval or order date. Confirm the specific rules that apply to your situation with your accountant.
How early should I start an EOFY equipment finance application?
As a general guide, starting several weeks to a few months before 30 June is often advisable, with more lead time needed for custom-built, imported or made-to-order assets. Leaving it to the last week of June carries meaningfully higher risk of missing the deadline.
What happens if my equipment doesn’t arrive before 30 June?
If the asset isn’t first used or installed ready for use by 30 June, it will typically fall into the following financial year for tax purposes instead, regardless of when it was ordered or financed. This may or may not change the applicable threshold or rules, so it’s worth checking with your accountant.
Is the instant asset write-off threshold confirmed for 2026-27?
Threshold rules can change based on legislation and government announcements, and proposed changes are not law until passed. Always confirm the current position directly with the ATO or your accountant before making a purchase decision based on a specific threshold.
Can I still get finance approved close to 30 June?
It’s possible, but processing times often extend during the EOFY period due to higher application volumes across the industry. Applying earlier gives more buffer if additional documentation or a valuation is needed.