Should you buy new tools Before or After the EOFY?

🔨 Should You Buy Tools Before or After the EOFY? A Guide for Aussie Tradies | Alltools WA

As we approach the end of the financial year (EOFY) in Australia, it’s a smart time for tradespeople to start thinking about tool investments. So, should you buy tools before or after the EOFY? It’s more than just a time to square up your books—it’s also an opportunity to take advantage of tax deductions, supplier discounts, and strategic planning for the year ahead.

At Alltools WA, we’re proud to support Australia’s hardworking tradies. Whether you’re a sparky, chippy, plumber or mechanic, knowing when to purchase new tools can help you get ahead both financially and professionally. Here’s a look at some of the pros and cons of buying tools before or after 30 June, and what makes the most sense depending on your individual situation.

📅 Buying Tools Before EOFY (Before 30 June)

✅ Advantages:

1. Instant Asset Write-Off & Full Expensing For eligible businesses, the ATO allows you to immediately write off the cost of tools and equipment used for your trade. This can significantly reduce your taxable income, provided the tools are used or ready for use in your business before 30 June.
2. Reduce This Year’s Tax Bill If you’ve had a strong year income-wise, buying tools now can help lower your taxable income. For some, this can mean the difference between staying in one tax bracket or jumping into a higher one.
3. Take Advantage of EOFY Sales Many suppliers offer EOFY deals that won’t be available come July. At Alltools WA, we run EOFY promotions on many items from cordless kits to air compressors.
4. Boost Productivity Right Away Better tools now means better performance now. If your old gear is holding you back, upgrading before EOFY ensures you start the new financial year on the front foot.

❌ Disadvantages:

• Immediate Cash Outlay: If cash flow is tight, buying now might strain your business or personal finances.
• Lower Deduction Impact if Income Was Low: If this year was slow, the tax deduction might not be as valuable as it would be next year with higher income.

📅 Buying Tools After EOFY (From 1 July Onward)

✅ Advantages:

1. Claim Deductions in the New Financial Year If you’re expecting more income next year, deferring your purchase means you’ll get a better tax offset when you need it most.
2. Start Fresh with New Gear Beginning a new financial year with upgraded equipment can set a proactive tone for the next 12 months.
3. Plan Purchases More Strategically Without the EOFY pressure, you can shop around, compare new releases, and buy exactly what you need.
4. Preserve Current Cash Flow Holding off gives your business more breathing room, especially if you’ve already claimed significant deductions this year.

❌ Disadvantages:

• Miss Out on EOFY Sales: Post-June, many tool promotions dry up. Waiting might mean paying full price.
• No Immediate Tax Benefit: You won’t be able to reduce this year’s taxable income, which could cost you more come tax time.

⚖️ Which Option is Best for You?

Ultimately, the right timing depends on your business’s financial position, taxable income, tool requirements, and cash flow.

Consider Buying Before EOFY if:

• You’ve had a strong income year and want to reduce your tax bill now.
• You need the tools urgently for jobs.
• You’re eligible for instant asset write-off and want to take advantage of it.
• You want to benefit from EOFY promotions.

Consider Buying After EOFY if:

• You expect higher income next financial year.
• You want to keep more cash on hand this quarter.
• You’re not in urgent need of tools.
• You want more time to plan your purchases and review updated tax thresholds.

📄 Reminder: ATO Guidelines May Change

The Australian Tax Office regularly updates the thresholds for the instant asset write-off and depreciation rules. It’s crucial to stay up to date with the latest tax laws or talk to your accountant to understand how current incentives apply to your specific circumstances.

💼 Disclaimer

This article is intended to provide general information only. Every business and tax situation is different. For personalised advice tailored to your circumstances, please consult a registered tax professional or qualified accountant. Alltools WA does not provide tax or financial advice.

🔧 Shop Smart with Alltools WA

At Alltools WA, we supply the best brands in the business including Gedore, Kincrome, Makita, DeWalt, DnC Workwear, Mitutoyo, and more. Whether you’re investing before EOFY or planning ahead for the new financial year, we’re here to help you get the gear you need to succeed.

• 🎉 Check out our EOFY deals online or in-store
• 📢 Speak with our helpful staff for tailored tool advice
• 🏠 Supporting Perth & Australian tradespeople for over 30 years

📍 Visit Us or Call Today

Ready to make your move? Come see us in-store or browse online at:

Website: www.alltoolswa.com.au
Phone: (08) 9272 7611
Location: 204 Collier Road, Bayswater, Perth WA