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With just a couple days left of FY25, SMEs are in a position to optimise finances, upgrade assets, and position for growth. Brokers are instrumental in this transition period.
In a discussion with Broker Daily, Moneytech’s group head of sales and distribution, Reece Ketu, said it’s the perfect time for brokers to be offering support to SME clients.
This includes accessing the $20,000 instant asset write-off, which was extended to EOFY.
“It’s not just about closing the books, it’s an opportunity to reassess finance structures, unlock value, and prepare for the year ahead. With the $20,000 instant asset write-off still available until 30 June, there’s a limited window to help clients invest in new or replacement assets and potentially improve their tax position,” said Ketu.
“Beyond that, brokers can help identify whether existing finance arrangements are still competitive and aligned with the client’s cash flow needs. These are the types of proactive conversations that deliver real value.”
Asset finance can help businesses manage cash flow and mitigate supply delays as the new financial year kicks off.
Ketu said asset finance “plays a key role” in navigating “ongoing cash flow pressure and lingering supply chain issues.”
SMEs can secure necessary equipment in a structured way that aligns with revenue cycles.
“This flexibility is especially important in sectors like construction, transport and agriculture, where delays and rising costs continue to impact day-to-day operations,” Ketu explained.
“A well-structured asset finance solution doesn’t just fund equipment – it supports broader working capital needs and allows businesses to respond more quickly to opportunities as they arise.”
SMEs are preparing for changes to tax debt as the general interest charge (GIC) comes into effect from 1 July. GIC is applied to unpaid tax liabilities and is worked out daily on a compounding basis.
Taxpayers will no longer be able to claim an income tax deduction for ATO interest charges incurred on or after 1 July 2025.
These changes represent a significant cost increase for businesses and, according to Valiant Finance, many SMEs have not factored the changes into financial planning.
Ketu said in response to the changes that SMEs are adjusting how they approach investment decisions.
“The planned reduction in the instant asset write-off from $20,000 to $1,000 from 1 July is prompting many businesses to bring forward purchases and capital upgrades before the deadline,” Ketu said.
“Changes to how the ATO treats interest on debt are leading some SMEs to adopt a more cautious approach, focusing on debt reduction and liquidity.
“This is where brokers have a valuable role to play, helping clients weigh short-term incentives against long-term business needs, and structuring finance that supports both stability and future growth.”
According to Bryn Harwood, partner at Tradies Accountants, SMEs should be approaching EOFY with long-term growth in mind.
Many are reportedly taking a more conservative approach in the lead-up to EOFY. While Harwood said this was understandable, it could hurt businesses in the long run.
“The biggest mistake we see is short-term thinking. Businesses should be considering what the next two to three years looks like, particularly with changes to tax rules and the ATO’s treatment of interest on debt. Those not planning ahead may find themselves stuck with outdated equipment or uncompetitive finance,” said Harwood.
[Related: Valiant Finance calls on SMEs to address legislative tax changes]
