1800 199 302
Every year in late May and June, something predictable happens in Australia’s car and vehicle finance market: self-employed business owners start moving. Dealers get busy. Finance applications spike. And for good reason — the end of the financial year creates a genuine, time-limited window to maximise the tax benefits of purchasing a business vehicle.
If you’re self-employed, hold an ABN, and have been thinking about upgrading your work vehicle, this guide explains exactly why June is the best time to act — and how CarFund arranges the finance with no tax returns required.
Why EOFY Matters for Vehicle Finance
The Australian tax year runs from 1 July to 30 June. For self-employed borrowers financing a vehicle with a chattel mortgage — the standard commercial product for ABN holders — three significant tax events are triggered at settlement:
1. Instant GST claim
If your business is GST-registered, you can claim the full GST component of the vehicle purchase price on your next BAS — which, if settled before 30 June, means you receive that refund in July, immediately into the new financial year. On a $77,000 ute, that’s $7,000 back from the ATO.
2. Interest deduction in the current financial year
Any interest that accrues on your chattel mortgage before 30 June is a tax deductible business expense in that financial year. Even one month of interest before EOFY contributes to reducing your taxable income for the year you’re trying to close.
3. Depreciation in the current financial year
Once the vehicle is registered in your name and being used for business, you can begin claiming depreciation. The timing of settlement determines which tax year that first depreciation claim falls into.
Together, these three events mean that settling a vehicle purchase in June — rather than July — can move a significant amount of tax benefit forward by a full twelve months.
The Instant Asset Write-Off — What Self-Employed Borrowers Need to Know
The instant asset write-off (IAWO) is a federal government scheme that allows eligible businesses to immediately deduct the full cost of a qualifying asset in the year it is purchased, rather than depreciating it over several years.
The key details for vehicle purchases:
- The threshold and eligibility rules change from year to year — your accountant is the definitive source on the current rules before you act
- Historically, the IAWO has applied to business assets including vehicles, with thresholds varying between $20,000 and $150,000+ at different points
- The vehicle must be purchased, delivereofy car finance self employeded, and ready for use before 30 June in the year you’re claiming
- It applies to the business-use portion of the vehicle only
For an ABN holder on the 30% small business tax rate, immediately writing off a $50,000 vehicle means a $15,000 tax saving in that financial year. For a vehicle at $80,000 with full business use, the saving at the same rate would be $24,000.
Confirm the current rules with your accountant. The IAWO scheme has been extended, modified, and means-tested multiple times, and the applicable threshold in any given year is not always what is widely reported. Your accountant confirms your eligibility and the correct treatment for your specific situation.
EOFY Dealer Pricing — Another Reason June Makes Sense
Beyond tax, June is also when dealers are most motivated to clear stock before their own financial year closes. This means:
- End-of-model-year discounts on new vehicles
- Dealers willing to negotiate harder on trade-ins and pricing
- Demonstrator vehicles available at significant reductions
Arriving at a dealership in June with CarFund pre-approval in hand — a confirmed borrowing limit, no subject-to-finance condition — puts you in a strong negotiating position. You’re a cash buyer from the dealer’s perspective. That matters.
How to Act Before 30 June — Timing Matters
For the tax benefits to apply in the current financial year, the vehicle must settle — meaning full payment is made and the vehicle is in your name — before 30 June.
| Event | Timing |
|---|---|
| Start enquiring / get quote | No later than 10 June |
| Submit full application | No later than 15 June |
| Approval received | No later than 20 June |
| Find vehicle and confirm | No later than 23 June |
| Settlement | No later than 27 June |
Why the buffer? Settlement requires coordination between CarFund, the lender, and the seller. Private sales, auction purchases, and inter-state dealers can add days. Leaving the last week of June for settlement gives you a meaningful buffer if anything requires follow-up.
If you’re reading this in early June — start your application now. CarFund’s approval process takes 24 hours and settlement typically completes within 2–3 business days of the vehicle being confirmed.
CarFund’s EOFY Finance Process — No Tax Returns
The last thing you need in June is a finance process that takes three weeks and asks for documents you haven’t had time to pull together. CarFund’s process is designed for exactly this period.
No tax returns required for car finance under $150,000.
No tax returns required for truck and equipment finance under $500,000.
Step 1 — Get a quote (5 minutes)
Call 1800 199 302 or complete our online form. We respond within 30 minutes. Our team monitors emails 7 days a week — this doesn’t change in June.
Step 2 — Apply (10 minutes)
One short application, online or by phone. For most loans under $150,000, this is all the documentation required.
Step 3 — Approval (24 hours)
We submit to the right lender — including Macquarie Bank and Capital Finance. Decisions come back within 24 hours in most cases.
Step 4 — Settlement (2–3 business days)
We pay the seller directly once you’ve confirmed the vehicle. Dealer, private sale, or auction — anywhere in Australia.
Common EOFY Vehicle Finance Questions
Do I need to take delivery of the vehicle before 30 June or just sign the contract?
For most tax purposes — including depreciation and the instant asset write-off — the vehicle must be delivered and available for use before 30 June, not just contracted. Check with your accountant on the specific treatment that applies to your situation.
Can I finance a used vehicle at EOFY and still get the tax benefits?
Yes. A chattel mortgage on a used vehicle provides the same tax structure — GST claim, interest deduction, depreciation — as on a new vehicle.
What if I can’t find the right vehicle in time?
Get your pre-approval in place now. Pre-approval is valid for 90 days, so even if you don’t find the exact vehicle before 30 June, you go into the new financial year as a confirmed buyer ready to move quickly.
Is it better to finance before or after EOFY?
From a pure cash flow perspective, settling before 30 June pulls all three tax events — GST refund, interest deduction, depreciation — into the current year. Settling in July pushes them into the following year. For most self-employed borrowers with a profitable current year, pulling those deductions forward is advantageous. Your accountant confirms this in the context of your actual tax position.
Can I claim a vehicle I’ve already purchased this year?
If the vehicle has already been purchased and settled in this financial year, the tax events already occurred at settlement. You don’t need to do anything differently — those claims apply in the return for this year.
Act Before 30 June — Get Your Quote Now
EOFY is the best window of the year for self-employed Australians to finance a work vehicle. The tax benefits are real, the dealer motivation is real, and the window closes on 30 June.
CarFund arranges low doc and no doc car, truck, and equipment finance for ABN holders across Australia — with no tax returns required and a process designed to move fast when timing matters.
Don’t leave your EOFY finance until the last week of June.
Call 1800 199 302 — 7 days a week, monitored through EOFY
Email enquiry@carfund.com.au — response within 30 minutes
CarFund.com.au | Self-employed car, truck and equipment finance — 20+ years