By Reece Ketu, group head of sale and distribution at Moneytech and Bryn Harwood
Since June 30 is approaching quickly, many Australian small and medium -sized companies are focused on tax conformity and reporting. But according to MoneyTech’s head of Group Sales & Distribution, Reece Ketu, the end of the financial year (EOFY) is also a critical window to re -assess financing strategies and growth position.
“Eofy is not just about reconciling the past, it is a strategic opportunity to optimize your financial structure for the coming year,” says Ketu. “Whether it is about replacing under -performance equipment, expanding your fleet or improving productivity through new technology, power financing can be a powerful tool when proactively is used.”
An important advantage of investing in assets Before June 30, it is potential to claim the $ 20,000 immediate asset debit of the federal government. For eligible companies with an aggregated turnover of less than $ 10 million, this makes an immediate tax deduction possible for the full costs of each eligible active under $ 20,000, provided that it is used for the first time or installed before 30 June 2025. The threshold is applicable, making multiple purchase debit.
It is important that this threshold changes from 1 July 2025 into just $ 1,000, which marks an important change to asset-related tax policy and creating a limited window to act before the current benefit ends. “The time is to take advantage of this generous depreciation before it actually disappears,” Ketu warns. “For many SMEs companies, this can be the last chance to maximize tax results and at the same time upgrade essential assets.”
But the benefits extend much further than the load. With continuous credit restrictions, rising operating costs and persistent delays for Supply Chain, many companies turn to an activa financing as a more agile way to finance growth, to maintain the cash flow and remain competitive.
“Companies need the possibility to move quickly when the right thing becomes available and to finance it in a way that matches their income cycles,” Ketu explains. “We see the growing demand for tailor-made financial solutions that do more than funds machines or expansion of the fleet, they support wider capital and cash flow needs.”
According to Bryn Harwood, partner at Trades Accountants, many construction and trading customers are under considerable pressure when it comes to cash flow, which stops them from making essential investments. “High interest rates and slow payers have led to hesitation on purchasing equipment and other financial decisions. In some cases, companies are waiting for interest rates before they are committed, but that delay can cost them valuable deductions and productivity.”
Harwood says that work capital printing encourages many SMEs to follow a more conservative financial approach in the run-up to Eofy. “We see many customers who prefer to pay debts and retain liquidity, instead of investing in growth. It is understandable in this environment, but the risk is lagging behind equipment upgrades or the lack of strategic opportunities that the cash flow can improve in the longer term.”
In important sectors such as construction, transport and agriculture, assets financing is increasingly being used, not only for equipment upgrades, but as a strategic lever to support working capital and operational agility.
Ketu says, this is time for SMEs to make an extensive overview of their financial arrangements. “Not only concentrate on what you have to buy. Look at the financial conditions where you are currently fixed. Are they still competitive? Does your old equipment cost you more than it is worthy of or to re -finance existing assetbinancing can unlock cash and operational efficiency without the need for large investments in the outfront,” he says.
Harwood also notes that financing structures must be adapted to the specific company. “Construction is a highly regulated industry, so structuring financing must be approached on a case-by-case basis. A one-size-fits-all approach will not cut it, especially for companies that manage multiple sites, compliance needs and the shifting of project time lines.”
He adds that Labor is the largest operational costs in most construction projects, companies have to think beyond assets. “The shortage of competent work has a serious influence on the construction sector. Having a solid strategy to hire and retain employees is just as important as the equipment you finance, it all comes back to how you structure your cash flow and plan for the future.”
Harwood also points to the growing need for SMEs to think in the long term. “The biggest mistake we see is thinking in the short term. Companies have to consider what the next two to three years look like, in particular with changes in tax rules and the interest rate of ATO on debts. Those who do not intend to be tied to outdated equipment or non-comprehensive finances.”
Ketu encourages entrepreneurs to ask if their financial structures are still suitable for the goal. Are reimbursements linked to seasonal income? Would bundling assets and work capital financing increase flexibility? Should asset financing play a greater role in your long-term financing strategy?
“Eofy is a catalyst, but smart operators treat financing as a continuous strategic lever, not just a tax activity,” says Ketu. “Well done, assets financing not only reduces load, it increases efficiency, improves the cash flow and strengthens your position to scale.”
With just a few weeks to go until the end of the financial year, this is the time to act. MKB must ask: which assets should be replaced or upgraded? Are the current financial conditions still tailored to business goals? Can we structure financing more strategically to support growth?
Eofy can be more than a compliance deadline; It can be an opportunity to reset, to coordinate, restructure and plan ahead with the goal.
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