EOFY Tax Planning for Arborists: 15 Strategies to Reduce Your Tax Before 30 June 2026

Author: George Morice, Chartered Accountant
Published: April 2026
Category: Tax Planning | Arborist Business

If you run a tree care business in Australia, the period between April and June is when the biggest tax savings are won or lost. The decisions you make in these final weeks of the financial year will directly determine how much tax you pay on 2025-26 income. Not next year. This year.

Too many arborists leave tax planning until August or September. By then, the opportunities have closed. You cannot backdate an equipment purchase. You cannot retrospectively prepay your insurance. The clock runs out on 30 June. This guide sets out 15 practical strategies you can implement before that date to legally reduce your tax, tailored to the realities of running a tree care operation.

If you want to work through these strategies with someone who understands arborist businesses inside and out, book a free consultation with our team at Arbour Advisory.

Why April to June Is Critical for Arborist Tax Planning

Every business owner should think about EOFY. But arborists face a particular set of circumstances that make the April-June window especially important.

Your Income Pattern Works Against You

Most tree care businesses earn their strongest revenue between September and April, driven by storm season, spring growth, and council contracts. By April, your year-to-date income is often higher than expected, your tax liability is building, and you have a narrow window to take action.

If you understand how seasonal cash flow affects your tax position, you can use the quieter winter months to your advantage rather than getting caught out by a larger-than-expected tax bill.

Equipment Costs Are Your Biggest Lever

A single chipper, elevated work platform, or truck purchase can swing your taxable income by $50,000 to $150,000. Whether that purchase happens before or after 30 June can mean the difference between a five-figure tax bill and a manageable one.

Cash Basis Accounting Gives You Flexibility

Most sole trader arborists use cash basis accounting, where income is taxable when received and expenses are deductible when paid. That creates genuine, legal opportunities to manage timing around 30 June.

15 EOFY Tax Strategies for Arborists

Strategy 1: Bring Forward Equipment Purchases

If you have been planning to buy a new chipper, stump grinder, crane truck, or any other piece of equipment, purchasing it before 30 June 2026 could allow you to claim the full cost as an immediate deduction under the instant asset write-off provisions.

Small businesses with aggregated turnover under $10 million can immediately deduct the full cost of eligible depreciating assets. The key: the asset must be first used or installed ready for use before 30 June. Signing a finance contract is not enough. The equipment needs to be delivered and operational.

This applies to all common arborist equipment:

• Wood chippers ($30,000 to $120,000+)
• Stump grinders ($15,000 to $60,000)
• Elevated work platforms and spider lifts ($80,000 to $200,000+)
• Crane trucks and tippers ($80,000 to $250,000+)
• Chainsaws, pole saws, and hand tools ($500 to $5,000 each)
• Trailers and transport equipment ($5,000 to $40,000)
• Safety equipment and harness systems ($2,000 to $10,000)

We have written a detailed breakdown of how this works in our instant asset write-off guide for arborists, including worked examples with real equipment costs.

Action: If you are considering any equipment purchase in the next 3 to 6 months, talk to your accountant about whether bringing it forward to before 30 June makes sense.

Strategy 2: Prepay Expenses Up to 12 Months Ahead

Small businesses can claim an immediate deduction for prepaid expenses where the service period is 12 months or less and ends before the end of the next financial year.

For arborist businesses, the most common prepayable expenses include: public liability insurance ($3,000 to $15,000 depending on crew size), workers compensation premiums, equipment and vehicle insurance, software subscriptions (accounting, job management, GPS tracking), lease payments on premises or storage yards, industry memberships, and marketing costs like website hosting or Hipages subscriptions.

Action: Contact your insurance broker and key suppliers before end of May to arrange early renewal. Keep records showing the payment date and service period covered.

Strategy 3: Make a Personal Super Contribution

If you are a sole trader or partner, your business does not pay super for you. But you can make personal concessional (before-tax) contributions to your super fund and claim a tax deduction for them.

For 2026-26, the concessional contributions cap is $30,000 per year. If you have unused cap amounts from previous years and your total super balance was under $500,000, you can carry forward those unused amounts. For a sole trader arborist earning $120,000, a $25,000 personal super contribution saves roughly $7,500 in tax at the 30% marginal rate. The contribution is taxed at just 15% inside the fund.

Action: Check your year-to-date contributions with your super fund, make and pay the contribution before 30 June, and submit a Notice of Intent to claim a deduction (Section 290-170) before lodging your tax return.

Strategy 4: Write Off Bad Debts Before 30 June

Every arborist has at least one customer who has not paid. If you have included that income in your accounts (which accrual basis businesses will have), you can claim a deduction when you formally write off the debt as bad before 30 June. You must have previously included the amount as assessable income, taken reasonable steps to recover it, and documented your recovery efforts. The ATO can ask for evidence.

Action: Run your aged debtors report. Identify any invoices over 90 days that are genuinely unrecoverable. Make a final recovery attempt, and if unsuccessful, formally write them off before 30 June.

Strategy 5: Review Your Vehicle Logbook

Your logbook must cover a continuous 12-week period and remains valid for five years, provided your usage pattern has not changed. This matters enormously for arborists. Your work vehicle is likely doing 80% to 95% business kilometres between job sites, council depots, the tip, and suppliers. If your logbook only shows 65% because it was done during a quiet period, you are leaving money on the table every year. Starting a new logbook in April gives you the full 12 weeks before 30 June.

Action: If your logbook is more than four years old or your driving patterns have changed, start a new one immediately. Use an app like the ATO’s myDeductions tool.

Strategy 6: Stocktake Your Consumables

Chains, bars, ropes, climbing gear, PPE, herbicides, stump grinding teeth, fuel, and two-stroke oil all sit on shelves and in trucks. If you buy consumables before 30 June, you can claim the cost in the current year under simplified trading stock rules (where the difference in stock value is less than $5,000). If your stock on hand at 30 June is lower than at the start of the year, the decrease is effectively an additional deduction.

For a complete list of deductible expenses for arborists, including consumables, fuel, and PPE, see our detailed guide.

Action: Do a physical stocktake in the last week of June. If you need consumables in the next few months, consider purchasing them before 30 June.

Strategy 7: Pay Employee Super Before 30 June (and Make Sure It Clears)

This one catches people out every year. To claim a deduction for employee superannuation contributions in the 2025-26 financial year, the payment must be received by the super fund before 30 June. Not sent. Not processed. Received.

If you use a clearing house, allow at least 7 to 10 business days for the payment to reach the fund. Also consider paying the June quarter super early (it is not due until 28 July). Paying it before 30 June gives you five quarters of deductions in one financial year instead of four.

For more on managing arborist employee obligations, see our guide on arborist payroll in Australia.

Action: Pay Q4 super (April to June) by mid-June at the latest to ensure it clears the fund before 30 June. Check with your clearing house on their processing timeframes.

Strategy 8: Defer Invoicing on Late June Jobs (Cash Basis Only)

If you are on cash basis accounting, income is only assessable when you receive payment. If you complete a tree removal job on 27 June but do not invoice until 2 July, any payment received will fall into the 2026-27 financial year.

This is a legitimate timing strategy, not tax evasion. You still declare the income in the year you receive it. It works particularly well for large council contracts, insurance work, or multi-day removals where invoicing a few days later is entirely normal.

Important: This does not apply if you are on accrual basis accounting. Accrual businesses recognise income when earned, regardless of payment timing. Check with your accountant if you are unsure which method you use.

Action: Review your job schedule for late June. For large jobs, consider whether delaying the invoice by a few days is commercially reasonable and tax-advantageous.

Strategy 9: Review Contractor vs Employee Classifications

The ATO has been actively auditing contractor arrangements in the trades. If you are treating workers as contractors when they should be employees, EOFY is the time to fix it.

Key indicators: Does the worker use your equipment? Do they work set hours on your schedule? Can they send a replacement? Do they work exclusively for you? If the answers point to employment rather than a genuine contractor arrangement, you have a problem. Getting this wrong can result in back-payment of super, PAYG withholding, payroll tax, penalties, and interest. We have seen arborist businesses hit with bills exceeding $50,000 from misclassification audits.

Action: Review every contractor arrangement. If any are questionable, get advice now. It is far cheaper to reclassify voluntarily than to be caught in an audit.

Strategy 10: Lodge Your TPAR (Taxable Payments Annual Report)

If you pay contractors, you must lodge a Taxable Payments Annual Report (TPAR) with the ATO by 28 August each year.

While the lodgement deadline is August, the preparation work should happen now. You need correct ABN details for every contractor, accurate payment totals for the full year, and GST amounts separated from gross payments. The ATO uses TPAR data to cross-match contractor income declarations, so discrepancies can trigger audits for both parties. For details on keeping compliant records, see our arborist record keeping guide.

Action: Run a report showing all contractor payments for the year. Verify ABN details are correct. Flag any contractors without a valid ABN, as you may need to withhold tax at the top marginal rate.

Strategy 11: Review Your Business Structure

Many arborists start as sole traders because it is simple and cheap, but as the business grows, a company or trust structure can offer significant tax advantages.

As a sole trader, income above $45,000 is taxed at 30% (plus Medicare levy) and above $135,000 at 37%. A company pays a flat 25% on business income. If your arborist business consistently generates taxable income above $100,000 as a sole trader, there is almost certainly a structural benefit to incorporating. But restructuring takes time, so planning needs to start now.

We have a detailed comparison of the options in our sole trader vs company guide for arborists.

Action: If you are a sole trader earning over $100,000, book a structure review meeting before 30 June to plan any changes for the 2026-27 year.

Strategy 12: Claim Home Office Expenses

Most arborist business owners do admin work from home: quoting, invoicing, scheduling, bookkeeping, and managing crews. These hours are deductible.

The simplest approach is the fixed rate method: 67 cents per hour for every hour you work from home. You need to keep a record of actual hours (a diary or calendar entries work fine). If you do 1 to 2 hours of admin at home each evening, that adds up to 350 to 700 hours per year, worth $235 to $469 in deductions. Alternatively, the actual cost method lets you claim a percentage of electricity, internet, phone, and depreciation of office furniture based on your home office use.

Action: Start tracking your home office hours now if you are not already. A simple note in your phone each day is sufficient.

Strategy 13: Review Your Asset Register for Scrapped or Disposed Assets

Arborist equipment takes a beating. If you have scrapped, sold, or disposed of any business asset during the year, your asset register needs to reflect this so you can claim the remaining book value as a deduction.

Think about chippers traded in on new models, chainsaws beyond repair, climbing ropes retired due to certification expiry, vehicles written off by insurers, or old signage replaced during a rebrand. If any of these still appear on your depreciation schedule, you are missing out on deductions.

Action: Review your asset register and identify anything you no longer own or use. Advise your accountant of all disposals, including the date and any proceeds received.

Strategy 14: Consider Income Splitting with Family Members

If your spouse or adult children are genuinely involved in your arborist business, paying them a reasonable wage for the work they do is a legitimate way to distribute income across lower tax brackets.

The key word is “genuinely.” The ATO will challenge arrangements where family members are paid for work they do not perform. But in many arborist businesses, family members answer phones, manage bookkeeping, run social media, pick up supplies, or work on the tools as ground crew. A reasonable part-time wage for genuine work is perfectly acceptable and can save your household thousands in tax.

If you operate through a trust structure, you may also distribute income to beneficiaries, subject to anti-avoidance rules. This requires careful advice.

Action: Ensure you have proper employment records for any family members: job descriptions, timesheets, and payments through payroll with PAYG withholding and super.

Strategy 15: Book a Tax Planning Meeting with Your Accountant Now

This is the most important strategy on this list, and it is the one most arborists skip.

A proper EOFY tax planning meeting happens before 30 June, while you still have time to act. Your accountant reviews your year-to-date profit, estimates your tax liability, and identifies which strategies above will deliver the best result for your situation. At Arbour Advisory, we model different scenarios for our arborist clients (What if you buy that chipper? What if you make a super contribution?) and give you a clear action plan with dollar amounts. The cost of the meeting is itself tax-deductible.

Action: Book your EOFY planning session now. Do not wait until June when every accountant in the country is booked solid. April and May are the ideal time to sit down and build your plan.

EOFY Checklist for Arborist Businesses

Use this as your quick-reference checklist. Tick off each item before 30 June 2026:

• Reconcile all bank accounts, credit cards, and loan accounts
• Issue all outstanding invoices for completed work
• Chase overdue debtors and write off any genuinely bad debts
• Review planned equipment purchases and consider bringing them forward
• Contact your insurance broker about prepaying renewals
• Check your personal super contribution cap and make a contribution if applicable
• Pay employee superannuation (including Q4) by mid-June
• Complete a physical stocktake of consumables, fuel, and materials
• Review your vehicle logbook and start a new one if needed
• Verify all contractor ABN details and prepare TPAR data
• Review your asset register and remove any disposed or scrapped assets
• Gather home office expense records and hour logs
• Review contractor vs employee classifications
• Ensure all BAS lodgements are up to date
• Book your EOFY tax planning meeting with your accountant

For a more detailed version of this checklist with step-by-step instructions, see our complete EOFY checklist for arborists.

Common EOFY Mistakes Arborists Make

We see the same mistakes every June. Avoid these and you will be ahead of most of your competitors.

Buying Equipment You Do Not Need Just for the Tax Deduction

If you spend $80,000 on a chipper you do not need, you save $20,000 to $28,000 in tax but you are still $52,000+ worse off. Only bring forward purchases you were already planning to make.

Missing the Super Clearing House Deadline

Paying super on 28 June and assuming it will reach the fund by 30 June is a gamble you will usually lose. Clearing houses can take 5 to 10 business days. Pay by mid-June at the latest.

Not Keeping Receipts for Small Purchases

Arborists buy consumables constantly: fuel, chains, two-stroke oil, ropes, PPE, first aid supplies, lunch for the crew on a long job. These small purchases add up to thousands over a year. If you do not keep the receipts, you cannot claim them. Use an app to photograph receipts as you go.

Forgetting to Claim Motor Vehicle Expenses Properly

For a vehicle doing 30,000+ business kilometres per year, the logbook method almost always gives a larger deduction than the cents-per-kilometre method. Do the comparison before you commit.

Leaving Structure Reviews Too Late

Restructuring cannot be done overnight or backdated. If your income justifies a structure change, start the process well before 30 June to have the new structure in place for 1 July. Leaving it until your tax return appointment means you have missed the boat for another year.

Frequently Asked Questions

What is the instant asset write-off threshold for arborist businesses in 2026-26?

Small businesses with aggregated turnover under $10 million can instantly deduct the full cost of eligible depreciating assets under the simplified depreciation rules. The asset must be first used or installed ready for use before 30 June 2026. This covers all common arborist equipment including chippers, stump grinders, trucks, and chainsaws. Confirm current thresholds with your accountant or on the ATO website, as these rules are subject to legislative change.

Can I claim a tax deduction for prepaid insurance before 30 June?

Yes. Small businesses can claim an immediate deduction for prepaid expenses where the service period is 12 months or less and ends before 30 June of the following financial year. If you pay your public liability insurance 12 months in advance before 30 June 2026, you can claim the full amount in the 2025-26 year. This applies to public liability, workers compensation, vehicle, and equipment insurance.

When is the deadline for paying employee super to claim a deduction this financial year?

The payment must be received by the employee’s super fund on or before 30 June 2026. This is not the date you initiate the payment. If you use a clearing house, allow at least 7 to 10 business days for processing. Pay no later than mid-June to be safe. The June quarter super is not legally due until 28 July, but paying it early gives you five quarters of deductions in one financial year.

Should I defer invoicing to reduce my tax this year?

If you use cash basis accounting, you are only taxed on income when you receive payment. Delaying an invoice on work completed in late June means the payment falls into the new financial year. This is legitimate, but it only works for cash basis taxpayers. Accrual basis businesses recognise income when earned regardless of payment timing. Consider your cash flow needs before deferring.

How much can I contribute to super as a sole trader arborist and claim as a deduction?

The concessional contributions cap for 2026-26 is $30,000 per person per financial year. As a sole trader, make a personal contribution and claim a tax deduction by submitting a Notice of Intent (Section 290-170) to your fund before lodging your return. If your total super balance was under $500,000 at 30 June 2025 and you have unused cap amounts from prior years, you can carry those forward. The contribution is taxed at 15% inside super, compared to your marginal rate of up to 45%.

What records do I need for my arborist vehicle logbook claim?

A valid logbook must cover a continuous 12-week period and record the odometer reading at the start and end, the date and purpose of every trip, and whether each trip was business or private. The logbook is valid for five years unless your circumstances change. For arborists, travel between job sites, suppliers, the tip, and storage yards is all business use. A well-maintained logbook typically shows 80% to 95% business use, giving a substantially larger deduction than the cents-per-kilometre method.

Before you finalise your EOFY plan, make sure your quarterly BAS lodgements are up to date. Our BAS compliance guide for arborists covers deadlines, common mistakes, and fuel tax credit claims that could save you thousands.

Take Action Before 30 June

These are the same strategies we implement with our arborist clients every year. The difference between planning ahead and reacting after 30 June can easily be $10,000 to $30,000 in tax savings. But none of it works if you leave it too late. Equipment purchases need to be delivered, super contributions need to clear the fund, and prepayments need to be made. All of this takes time.

Book a free consultation with our team to get a tailored EOFY tax plan for your arborist business before 30 June 2026. You can also explore our tax compliance services and our library of arborist-specific tax guides.