If you’re an arborist or tree service professional in Australia, your chainsaw is an essential work tool. The good news? You can claim it on your tax return. This guide explains exactly how to maximize your chainsaw tax deductions.
Can You Claim a Chainsaw on Tax?
Yes, if you use it for work. Chainsaws used to produce assessable income are tax-deductible. This applies to:
- Employed arborists
- Self-employed tree loppers
- Tree service business owners
Instant Deduction vs Depreciation
Under $300
If your chainsaw costs less than $300, you can claim the full amount as an immediate deduction in the year you purchased it.
Over $300
Chainsaws over $300 must be depreciated over their effective life. The ATO effective life for chainsaws varies by type:
- General chainsaws: typically 3-5 years
- Professional/commercial chainsaws: check the ATO’s current effective life determinations for specific rates
Instant Asset Write-Off (Small Business)
If you’re a small business with aggregated turnover under $10 million, you can instantly deduct assets costing less than $20,000 (as of 2025-26).
What Chainsaw Expenses Can You Claim?
- Purchase price (or depreciation)
- Repairs and maintenance
- Replacement chains and bars
- Chainsaw oil and fuel (work-related portion)
- Protective equipment (chaps, gloves, helmet) – usually under $300 = instant deduction
- Sharpening services
- Carrying cases and storage
Records You Need to Keep
- Purchase receipts with date and amount
- Logbook if used partly for private purposes
- Maintenance and repair receipts
- Photos of the asset (recommended)
Keep records for 5 years from the date you lodge your tax return.
Common Mistakes to Avoid
- Claiming 100% when there’s private use – keep a logbook
- Forgetting to claim repairs and maintenance
- Not keeping receipts
- Claiming the full cost when you should depreciate
Need Help Maximizing Your Deductions?
At Arbour Advisory, we specialize exclusively in accounting for arborists. We know every deduction you’re entitled to claim. Book a free consultation to review your tax position.
Claiming all your equipment deductions?
We help arborists claim every legitimate deduction for tools, equipment, and consumables.
Book Your Free ConsultationTalk to a specialist arborist accountant
Arbour Advisory works exclusively with arborists, tree loppers and tree care businesses across Australia. Book a free, no-obligation consultation to talk through your tax, bookkeeping, equipment finance or growth questions.
