Should I settle a machine purchase before or after 30 June?
The sheet runs its income years from 1 July to 30 June, so settling a machine either side of 30 June puts the first deduction in a different year and discounts its tax benefit to a different date. Run the same figures on both settlement dates and read the present values.
Why does the settlement date change the answer?
Because a deduction is worth what it saves on the tax you pay for that income year, and the sheet discounts that saving to today at your own after-tax discount rate. A deduction that lands a year earlier is discounted for one year less, so a June settlement and a July settlement are not the same sheet.
How do you run it both ways?
Change the settlement date in the sheet and press Build the sheet. The income years, the deduction timing year by year, the GST credit quarter and the present value of each option all move with it, and every other box you pasted stays as it was.
Frequently asked questions
Does settling before 30 June always win?
No, and the sheet never assumes that. A deduction pulled into an earlier year is worth more in today dollars, but the payment date, the trade-in timing and the lease's own start move too. Run both settlement dates on your own figures and read the present values.
What does the sheet need to compare two settlement dates?
The same five boxes: the dealer quote, the bank loan offer, the dealer lease terms, a used machine and your farm and tax profile. Only the settlement date changes between the two runs, so the difference you see is the date and nothing else.
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