With June 30 just weeks away, it's the busiest time of year for vehicle finance. Whether you're a sole trader looking to write off a ute, a business owner upgrading your fleet, or an employee wanting to maximise your tax position — the end of financial year creates real opportunities to save money.
But here's the thing: EOFY vehicle deals aren't just about the sticker price. The finance structure you choose, the timing of your purchase, and the deductions you claim all matter just as much — sometimes more.
I've put together this checklist based on what I see every year helping clients across Brisbane and Queensland lock in the right deal before June 30.
Why EOFY Matters for Vehicle Finance
The end of the financial year is significant for two reasons:
- Instant asset write-off — Under the current rules, eligible businesses can immediately deduct the full cost of assets (including vehicles) purchased and first used or installed ready for use before June 30. The deduction applies in the financial year the vehicle is first used for business purposes.
- Dealer incentives — Dealerships are clearing stock to hit yearly targets. This means genuine discounts, not just marketing hype. Factory bonuses, fleet pricing, and demonstrator clearances are all more accessible in May and June.
Put those two together and you've got a window where the vehicle costs less and the tax benefit is immediate.
Your Pre-June 30 Checklist
1. Confirm Your Business Structure Qualifies
Not every buyer gets the same tax treatment. Here's the quick breakdown:
- Sole traders and partnerships with an ABN — eligible for instant asset write-off and GST credits on the business-use portion
- Companies and trusts — same benefits, often with more flexibility on how deductions flow through
- PAYG employees — you won't get the instant asset write-off, but you can use a PAYG tax variation to reduce the tax withheld from every pay, increasing your take-home pay immediately
Your accountant should confirm your eligibility, but knowing which bucket you fall into shapes every decision from here.
2. Understand the Car Limit
For the 2025-26 financial year, the car limit for depreciation is $69,674. This means:
- If your vehicle costs $69,674 or less (GST-inclusive for GST-registered businesses), you can claim the full amount under instant asset write-off
- If it costs more than $69,674, your depreciation claim is capped at that figure — you can't write off the excess
- This limit applies to passenger vehicles only. Commercial vehicles like utes, vans, and trucks that can carry more than 1 tonne or more than 9 passengers are exempt from the cap
This is exactly why so many tradies and business owners time their ute purchases for EOFY — a $75,000 dual-cab ute isn't subject to the car limit, so the full amount is deductible.
3. Choose the Right Finance Structure
This is where most people leave money on the table. The finance product you choose determines what you can claim and when.
Chattel mortgage — the most popular choice for ABN holders. You own the vehicle from day one, claim GST credits upfront, and deduct interest + depreciation. Works perfectly with the instant asset write-off because you're the owner from settlement.
Hire purchase — similar to chattel mortgage but ownership transfers at the end. Still eligible for instant asset write-off. Good if you want a guaranteed purchase price at the end of the term.
Consumer car loan — for personal use or PAYG employees. No GST credits but the interest may still be deductible if the vehicle is used for income-producing purposes.
The wrong structure can cost you thousands in missed deductions. This is exactly what I help my clients work through — matching the right finance product to your situation. Get in touch and I'll run through your options in 10 minutes.
4. Get Pre-Approved Before You Shop
This is my number one tip every EOFY: get your finance sorted before you set foot in a dealership.
Here's why:
- You know your budget — no falling in love with a vehicle you can't afford
- You negotiate from strength — the dealer knows you're a serious buyer with finance ready to go
- You avoid dealer finance — which is almost always more expensive than going through a finance broker
- Settlement is faster — critical when you're racing the June 30 deadline
Pre-approval typically takes 24-48 hours through a broker. With the EOFY rush, lenders get busier in June, so getting in early gives you the best chance of a smooth settlement.
5. Factor in the Real Timeline
This catches people out every year. To claim the deduction in this financial year, the vehicle must be purchased, delivered, and first used or installed ready for use before June 30.
That means:
- Factory-ordered vehicles — if there's a 6-8 week build time, you're already too late unless you order now
- Finance approval — budget 2-5 business days for full approval, longer if your situation is complex
- Settlement — another 2-3 business days after approval for funds to reach the dealer
- Registration and delivery — 1-3 business days depending on the dealer
Working backwards from June 30, you really want everything locked in by mid-June at the latest. Starting the process in late June is a recipe for missing the deadline.
6. Don't Forget the Running Costs
The purchase price isn't the only deduction available. Once you own a business vehicle, you can also claim:
- Fuel and oil
- Registration and insurance
- Repairs and servicing
- Loan interest
- Depreciation (if you haven't used instant asset write-off)
- Tolls and parking (for business use)
Keep a logbook for at least 12 consecutive weeks to establish your business-use percentage. The ATO requires this, and it determines what proportion of all running costs you can claim.
7. Consider the PAYG Tax Variation
If you're a PAYG employee who uses your vehicle for work, you don't have to wait until tax time to get the benefit. A PAYG tax variation reduces the amount of tax withheld from your regular pay, putting money back in your pocket every pay cycle.
This works by your accountant estimating your work-related deductions for the year and lodging a variation with the ATO. Instead of getting a lump sum refund in October, you get an extra $100-$300 per fortnight throughout the year.
The best time to set this up? Right after you've purchased the vehicle, so you capture the maximum number of pay cycles in the financial year.
8. Get Multiple Quotes (or Use a Broker)
Every lender has different appetites. One might offer 6.99% for your profile while another quotes 8.5%. Over a 5-year loan on a $50,000 vehicle, that 1.5% difference is over $2,000 in extra interest.
A finance broker compares multiple lenders in one conversation. I have access to over 30 lenders on my panel, and I know which ones are running EOFY specials, which ones approve fastest, and which ones suit your specific situation.
The broker's commission is paid by the lender, not you — so there's genuinely no cost to using one.
Common EOFY Mistakes to Avoid
Buying a vehicle you don't need just for the tax deduction. A $60,000 deduction at the 30% company tax rate saves you $18,000 in tax — but you've still spent $60,000 on a vehicle. Only buy if you actually need the vehicle.
Missing the settlement deadline. As above — if the vehicle isn't delivered and in use by June 30, you can't claim it this year. Start early.
Forgetting about balloon payments. A balloon reduces your monthly repayments but leaves a lump sum at the end. Make sure you understand the total cost of the loan, not just the monthly figure.
Not keeping records. The ATO can (and does) audit vehicle claims. Keep your logbook, receipts, and finance documents organised from day one.
Your EOFY Action Plan
Here's the ideal timeline if you're looking to purchase before June 30:
- This week: Talk to your accountant about your tax position and confirm the best finance structure
- Next step: Contact me for a pre-approval — I'll compare rates across 30+ lenders and find the best fit
- Once approved: Shop with confidence, knowing your budget and timeline
- Before June 20: Settle and take delivery to give yourself a buffer before June 30
If you're thinking about a vehicle purchase before EOFY — or you're not sure whether it makes financial sense — give me a call on 0468 011 191 or send through an enquiry. I'll give you a straight answer in 10 minutes.
Richard Comer
Flagship Financial
Finance for busy people.
