One of the most significant changes for small business equipment planning is the government’s announcement that the $20,000 instant asset write-off threshold is proposed to be made permanent from 1 July 2026, if the legislation passes Parliament. For several years, businesses have had to make investment decisions under annual uncertainty about whether the threshold would be extended. If the permanent extension is legislated, it removes that pressure and allows businesses to plan equipment purchases based on genuine operational need and cash flow timing rather than tax deadlines.

The start of a new financial year is an ideal moment to review your existing equipment finance commitments. Are the interest rates on your current facilities still competitive? Are there assets you are still financing that are no longer core to your operations? Are any loan terms coming to an end that will require a decision about refinancing or replacement? Getting across these questions early in the year gives you time to act thoughtfully rather than under pressure.

One of the downsides of the annual EOFY rush is that it compresses business investment decisions into a narrow window, which can lead to rushed choices, stretched cash flow and competition for finance and supply at the same time as everyone else. With a full financial year ahead, businesses that map out their likely equipment needs now have more time to make better purchasing decisions.

Not all equipment finance is the same, and the structure that suits one asset may not be right for another. A chattel mortgage gives the business ownership of the asset from day one and may allow GST to be claimed upfront, while a finance lease keeps the asset off the balance sheet and suits businesses that prefer to upgrade regularly. Hire purchase falls somewhere between the two. The right choice will depend on the type of asset, how long you intend to use it, your GST registration status and your broader tax position.