Borrow before or after EOFY? How to Decide

12 June 2025

Should You Borrow Before or After June 30?

With the end of financial year closing in, many business owners are wondering:

“Should I finance that truck or equipment now or wait until July?”

There’s no one-size-fits-all answer. It depends on your tax position, cash flow, and whether there’s an actual reason to act now. But here’s a simple breakdown to help you make the right move.

📌 1. Borrowing before June 30 may make sense if:

You want to claim the purchase as a deduction this financial year
Your profits are up, and you’re trying to reduce taxable income
A supplier is offering an EOFY deal you don’t want to miss
You’re ready to settle and use the equipment before the deadline

If you fall into any of these categories, it may be worth acting before June 30. Your accountant can confirm whether the deduction actually helps this year.

📌 2. Borrowing after July 1 might be smarter if:

Your income is already low this year, so a deduction won’t help much
You’d rather have repayments start next financial year
You’re still waiting on quotes, or planning to buy later
Your accountant recommends holding off until new thresholds kick in

Sometimes holding off a few weeks can give you more breathing room and better timing.

💡 Bonus: Pre-approval gives you 90 days

Even if you’re not ready to buy just yet, getting pre-approved now can lock in your rate and give you up to 90 days to make the purchase.

That means:

You don’t have to rush the decision
You can still grab a strong EOFY rate
If rates go up in July, you’re protected

It’s one of the easiest ways to stay flexible.

⚖️ How to Decide? (A Quick Checklist)

Ask yourself:

Will the deduction actually reduce my tax this year?
Can I comfortably handle repayments from July?
Is there a deadline, offer, or business reason to act now?
What does my accountant recommend?

Final Words

The smartest move is the one that fits your numbers not just the tax calendar.

If you’re unsure, we’re happy to run the numbers and show you what it looks like either way. No forms, no fluff just clear info so you can decide with confidence.

Disclaimer: This article is for general information only and does not constitute financial or tax advice. You should always speak with your accountant or registered tax adviser before making any financial decisions.