Should You Buy Assets or Pay Bonuses Before EOFY?

Note: This post is general in nature and not intended as personal financial advice. Always speak to a qualified advisor about your specific situation.

The Smart Business Owner’s Guide to Pre-June 30 Moves

When June 30 looms, many business owners feel the pressure to “spend or lose it.”But is it smarter to buy business assets or reward your team with bonuses before EOFY?

Let’s break it down by strategy, tax impact, and timing—so you make the move that benefits your business most.

Option 1: Buy Business Assets

New laptop? Machinery? Office upgrades? It’s tempting to invest now—but is it worth it?

Pros:

• Assets over $1,000 may still be eligible for the Instant Asset Write-Off (check ATO updates)

• You can deduct the expense in the current tax year—if installed and ready for use by June 30

• Helps upgrade tools, improve productivity

Cons:

• Ties up cash flow

• Only effective if your business needs the asset now—not just for tax purposes

• May not be fully deductible if eligibility rules change

ATO: Instant Asset Write-Off explained

Best For: Businesses already planning purchases with strong profits to offset.

Option 2: Pay Staff Bonuses

EOFY bonuses are a great morale booster—but also have tax implications.

Pros:

• Fully deductible in the year they’re accrued—even if paid after June 30 (if documented)

• Shows appreciation and boosts retention

• Encourages performance-linked outcomes

Cons:

• Increases PAYG and super obligations

• May create expectations of annual bonuses moving forward

• Requires clear communication and formal documentation

Note: Super must also be paid on bonuses to be compliant (and deductible if paid by 25 June).

Best For: Teams who’ve hit milestones, contributed to growth, and deserve recognition.

What the ATO Says

"To claim a tax deduction for staff bonuses, they must be incurred by EOFY and paid in the next financial year under a valid agreement."

 — Australian Taxation Office —

Which Should You Choose?

Here’s a simple decision guide:

Your Situation	Ideal Action
Need new equipment anyway?	Buy asset now (if installed by June 30)
Team performed strongly?	Accrue and plan staff bonuses
Want cash flow flexibility?	Prepay deductible expenses (like rent, insurance)
Have surplus profit to offset?	Consider both, or consult on the best mix

Final Thought: It’s Not About “Spending to Save”

EOFY is a great time to make smart investments—but not unnecessary ones.

The goal isn’t to just reduce tax—it’s to build a stronger business going into FY2026.

Want help deciding what makes the most sense for your business? 

Book a 15-minute strategy call with ProfitCloud.online, and we’ll guide you through it.

Free Consultation

Book Now

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Note: This post is general in nature and not intended as personal financial advice. Always speak to a qualified advisor about your specific situation.