EOFY Checklist for Arborists: Instant Asset Write-Off & Tax Planning

If you run a tree care business, the weeks leading up to June 30 are about far more than just finishing that last pruning job before winter quietens things down. The end of financial year (EOFY) is your single biggest opportunity to reduce your tax bill, clean up your books, and set your arborist business up for a stronger year ahead.

But here is the problem: most arborists are flat out running crews, quoting jobs, and keeping equipment maintained. EOFY tax planning slides to the bottom of the list, and before you know it, July arrives and you have missed legitimate deductions worth thousands of dollars.

This guide is your complete EOFY checklist, written specifically for arborist business owners operating in Australia. Whether you are a sole trader with a single truck and chipper or you are running multiple crews across a metro area, this checklist will walk you through exactly what to do before June 30 to minimise your tax and stay on the right side of the ATO.

If you want personalised guidance on any of these strategies, our team at Arbour Advisory specialises in tax optimisation for arborist businesses and can help you make the most of every deduction available to you.

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Why EOFY Matters More for Arborists Than Most Businesses

Every business owner needs to think about EOFY planning, but arborist businesses face a unique set of circumstances that make the June 30 deadline particularly important.

Seasonal Income Patterns

Most tree care businesses experience significant income fluctuations throughout the year. Storm season and spring growth typically drive peak demand, while winter months can be quieter in many regions. This means your taxable income might look very different depending on which months were strongest.

Understanding your income pattern is critical because it affects decisions like whether to accelerate expenses into this financial year or defer income into the next.

Heavy Equipment and Asset Depreciation

Arborists rely on expensive, specialist equipment: elevated work platforms, wood chippers, stump grinders, chainsaws, vehicles, and trailers. The way you handle asset purchases and depreciation at EOFY can have an enormous impact on your tax position.

A single well-timed equipment purchase before June 30 could reduce your taxable income by tens of thousands of dollars. Conversely, poor timing or incorrect depreciation treatment could mean you miss out on deductions entirely.

Contractor and Labour Complexity

Many arborist businesses use a mix of employees and subcontractors. EOFY is the time to ensure you have properly categorised and documented these arrangements, because the ATO pays close attention to the distinction between employees and contractors in the trades.

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The Complete EOFY Checklist for Arborist Businesses

Here is your numbered checklist. We will go into detail on each item in the sections that follow, but use this as your master reference to make sure nothing gets missed.

1. Reconcile all bank accounts and credit cards to ensure every transaction is recorded and categorised correctly.
2. Review and record all outstanding invoices (both money owed to you and money you owe to suppliers).
3. Chase outstanding debtor payments before June 30 or consider writing off genuinely bad debts.
4. Conduct a stocktake of consumables, fuel, chemicals, and any materials on hand.
5. Review work-in-progress (WIP) for any tree care jobs started but not yet completed or invoiced.
6. Assess equipment purchases and determine whether the instant asset write-off applies.
7. Prepay eligible expenses before June 30, including insurance premiums, subscriptions, and lease payments.
8. Pay superannuation contributions early enough that they are received by the fund before June 30.
9. Review employee records, including finalising pay runs and confirming PAYG withholding amounts.
10. Lodge all outstanding BAS returns and ensure GST is reconciled.
11. Review motor vehicle logbooks and ensure they are current and complete.
12. Gather and organise all receipts and records for business expenses throughout the year.
13. Review your business structure and assess whether it still suits your circumstances.
14. Consider personal superannuation contributions for additional tax deductions.
15. Book your EOFY meeting with your accountant well before the June rush.

Now let us work through the key areas in detail.

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Instant Asset Write-Off: What Arborists Need to Know

This is arguably the most significant EOFY opportunity for arborist businesses, and it is one of the areas where we see the most confusion.

How It Works

Under the instant asset write-off provisions, eligible businesses can immediately deduct the full cost of eligible assets in the financial year they are first used or installed ready for use. Rather than depreciating an asset over several years, you claim the entire cost upfront, which significantly reduces your taxable income in that year.

The eligibility thresholds and rules have changed multiple times in recent years, so it is essential to check the current rules on the ATO’s depreciation and capital expenses page or speak with your accountant before making purchasing decisions.

What This Means for Arborist Equipment

Consider the types of assets arborist businesses commonly purchase:

• Wood chippers ($30,000 – $80,000+)
• Stump grinders ($15,000 – $60,000)
• Elevated work platforms ($50,000 – $150,000+)
• Ute and truck fit-outs ($10,000 – $40,000)
• Chainsaws, pole saws, and hand tools ($500 – $5,000 per item)
• Trailers ($5,000 – $30,000)
• Safety equipment (harnesses, helmets, PPE)

If you have been putting off an equipment purchase, buying before June 30 could be a smart move, but only if you genuinely need the equipment. A $50,000 purchase might save you $12,500 to $23,500 in tax depending on your tax rate, but you are still out of pocket for the remainder.

Timing Is Critical

The asset must be first used or installed ready for use before June 30 for you to claim the deduction in the current financial year. Ordering a new chipper on June 25 that does not arrive until July 8 means you cannot claim it until the following year.

If you are considering a major purchase, start the process early. Equipment suppliers in the arboriculture industry often experience a rush of orders in May and June, which can cause delivery delays.

Example

Say you are a sole trader arborist with a taxable income of $130,000 this financial year. You purchase a new wood chipper for $45,000 (excluding GST) in May and put it into use immediately. If eligible for the instant asset write-off, your taxable income drops to $85,000. At the 2024-25 individual tax rates, this could reduce your income tax bill by approximately $16,650. That is real money back in your pocket simply by timing a purchase you were going to make anyway.

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Prepaying Expenses Before June 30

Prepaying certain business expenses is a legitimate and straightforward strategy to bring deductions forward into the current financial year.

What You Can Prepay

Common prepayments for arborist businesses include:

• Insurance premiums (public liability, professional indemnity, workers compensation, equipment insurance)
• Software subscriptions (job management software like Arborgold or Jobber, accounting software, GPS tracking)
• Industry memberships (Arboriculture Australia, local business associations)
• Equipment leases or hire purchase payments
• Rent on your yard, workshop, or storage facility
• Training and certification costs (upcoming courses booked and paid before June 30)

The 12-Month Rule

Small businesses can generally deduct prepaid expenses immediately if the prepayment covers a period of 12 months or less that ends before the end of the next financial year. For example, paying your public liability insurance premium of $8,000 in June for the coming 12-month policy period would typically be fully deductible in the current year.

This is a simple but effective way to bring forward thousands of dollars in deductions. If your insurance renewal falls in July or August, ask your insurer whether you can renew early and pay before June 30.

Example

Suppose you prepay the following expenses before June 30:

Expense	Amount
Public liability insurance	$8,500
Jobber subscription (annual plan)	$1,800
Arboriculture Australia membership	$450
Workshop rent (one quarter in advance)	$4,500
Total prepayments	$15,250

At a company tax rate of 25%, that $15,250 in brought-forward deductions saves you $3,812.50 in tax. For a sole trader in the $120,001 – $180,000 bracket, the saving is even greater at the 37% marginal rate (plus the 2% Medicare levy), potentially saving around $5,947.50.

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The Superannuation Deadline Trap

This is one of the most common and costly mistakes we see arborist business owners make at EOFY, and it catches people out every single year.

The Rule Most People Get Wrong

To claim a tax deduction for superannuation contributions in a given financial year, the contributions must be received by the super fund before June 30, not merely paid or initiated by that date.

This is a crucial distinction. If you process a super payment through your clearing house on June 28, the money might not reach your employees’ super funds until early July. In that scenario, the deduction falls into the next financial year, not the current one.

What This Means in Practice

Most super clearing houses (including the ATO’s Small Business Superannuation Clearing House) recommend allowing at least 7 to 10 business days for payments to be processed and received by the fund. Some industry funds and retail funds may take even longer.

The safe approach: Make your final super contributions for the financial year by mid-June at the latest. If you pay super quarterly, do not wait until the standard June quarter deadline of July 28. Bring it forward.

For Employees

You are required to pay the superannuation guarantee (currently 11.5% for 2026-25) for all eligible employees. Paying this on time is not optional, and late payments attract the super guarantee charge, which is not tax-deductible. The ATO takes late super payments seriously and has been increasing enforcement activity.

For more detail on super guarantee obligations and deadlines, see the ATO’s superannuation for employers page.

For You as the Business Owner

If you are a sole trader or operate through a company or trust, consider making personal concessional (before-tax) superannuation contributions up to the annual cap. These contributions are deducted from your taxable income and taxed at just 15% inside the super fund, which is likely much lower than your marginal tax rate.

For example, if your marginal tax rate is 37% (plus 2% Medicare levy), a $20,000 personal super contribution would save you approximately $4,800 in tax after accounting for the 15% contributions tax. You are building your retirement savings and reducing your current-year tax at the same time.

Again, the money must be received by the fund before June 30 for the deduction to count in the current year.

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Stocktake and Work-in-Progress for Tree Care Businesses

Stocktake might sound like something only retail businesses need to worry about, but arborist businesses carry consumable stock and often have work in progress at year end that needs to be accounted for.

Consumable Stock on Hand

At June 30, you should count and value the following items you have on hand:

• Fuel and oil (diesel, two-stroke mix, bar and chain oil, hydraulic fluid)
• Herbicides and chemicals (glyphosate, growth regulators, fungicides)
• Consumable parts (chainsaw chains, bars, sprockets, filters, ropes)
• Safety consumables (gloves, ear plugs, safety glasses)
• Mulch or timber stock (if you sell or process timber products)

You do not need to count every pair of safety glasses, but if you have $3,000 worth of chainsaw chains and herbicide sitting in your workshop, that stock needs to be recorded for your end-of-year accounts.

Work-in-Progress (WIP)

If you have tree care jobs that are underway at June 30 but not yet completed or invoiced, these may need to be accounted for as work-in-progress. This is particularly relevant for:

• Large-scale land clearing jobs that span multiple weeks
• Council or government contracts with staged completion dates
• Ongoing maintenance contracts where work has been performed but not yet billed

The treatment of WIP depends on your accounting method and business structure. If you operate on a cash basis, the rules differ from accruals-based accounting. This is an area where getting advice from an accountant who understands the arborist industry is genuinely valuable, because getting WIP wrong can either inflate your taxable income or create issues in future years.

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Reconciling Your Books Before Your Accountant Starts

Walking into your EOFY accountant meeting with clean, reconciled books is one of the best things you can do to minimise your accounting fees and maximise the time your accountant spends on actual tax planning rather than data cleanup.

Bank Reconciliation

Every transaction in every business bank account and credit card should be matched and categorised. If you use accounting software like Xero or MYOB, this means working through the bank reconciliation screen until there are zero items to review.

Common issues we see with arborist businesses:

• Cash jobs that have not been recorded (a reminder: all income must be declared, cash or otherwise)
• Personal expenses mixed in with business accounts
• Transfers between accounts incorrectly coded as income or expenses
• Loan repayments not correctly split between principal and interest

Accounts Receivable (Debtors)

Review every outstanding invoice. Are there any customers who are genuinely unlikely to pay? If you have made reasonable efforts to collect a debt and it is truly unrecoverable, you may be able to write it off as a bad debt deduction before June 30.

For arborists, this commonly arises with:

• Residential customers who have disputed the scope of work
• Property managers or developers who have gone into administration
• Insurance-related jobs where the claim has been denied

Document your collection efforts thoroughly. The ATO may ask for evidence that the debt is genuinely bad, not just slow to pay.

Accounts Payable (Creditors)

Check that all supplier invoices have been received and recorded, including:

• Equipment hire companies
• Fuel suppliers
• Parts and consumables suppliers
• Subcontractors
• Insurance brokers
• Your accountant and bookkeeper

If you are on an accruals basis, expenses are deductible when incurred, not when paid. Make sure all June expenses are recorded even if you have not paid them yet.

GST Reconciliation

Before lodging your final BAS for the year, reconcile your GST. Check that:

• All sales have the correct GST treatment (most arborist services are GST-inclusive)
• Input tax credits have been claimed on all eligible purchases
• Any private-use adjustments have been made (especially for vehicles)
• The GST amounts in your accounting software match your BAS lodgements for the year

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What Records to Keep and For How Long

Good record-keeping protects you in the event of an ATO audit and ensures you can substantiate every deduction you claim. This is especially important for arborists, where large equipment deductions and vehicle claims are common audit targets.

The Five-Year Rule

The ATO generally requires you to keep records for five years from the date you lodge your tax return. For some records, particularly those relating to assets and capital gains, you may need to keep them for longer.

Records Arborist Businesses Must Keep

At minimum, maintain the following:

• Income records: All invoices issued, bank statements, cash register records, and records of any bartering or contra arrangements
• Expense records: Receipts or tax invoices for all purchases over $82.50 (including GST). For purchases under $82.50, you still need some form of record, though a tax invoice is not strictly required
• Asset records: Purchase receipts, contracts, finance agreements, and depreciation schedules for all equipment, vehicles, and other business assets. Keep these for the life of the asset plus five years after you dispose of it
• Employee records: Pay slips, super payment records, PAYG withholding summaries, employment contracts, and TFN declarations
• Contractor records: Written agreements, invoices, and ABN details. If a contractor does not provide an ABN, you are required to withhold 47% from their payments
• Vehicle logbooks: If you use the logbook method, your logbook must cover a continuous 12-week period and is valid for five years (provided your usage pattern does not change significantly)
• BAS and tax returns: Copies of all lodged returns and working papers

Digital vs Paper Records

The ATO accepts digital records, and we strongly encourage arborist businesses to go paperless where possible. Receipts from equipment suppliers, fuel dockets, and hardware store purchases fade quickly. A quick photo on your phone uploaded to your accounting software on the same day takes 30 seconds and could save you hundreds of dollars if the ATO ever asks for evidence.

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Reviewing Your Business Structure

EOFY is a natural checkpoint to assess whether your current business structure is still the right fit. Many arborists start out as sole traders because it is simple and low-cost, but as the business grows, a company or trust structure might offer significant tax advantages.

When to Consider Restructuring

A conversation about structure is worthwhile if your taxable income as a sole trader consistently exceeds $90,000 – $100,000, you are employing staff and taking on larger contracts, you are accumulating significant business assets, or you need asset protection given the inherent physical risks of arboriculture.

Restructuring is not something to rush into, and it has costs and implications that need careful analysis. But EOFY is the right time to start the conversation so any changes can be implemented at the start of the new financial year. Our tax optimisation service includes a full review of your business structure as part of the engagement.

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Frequently Asked Questions

When should I start my EOFY preparation?

Ideally, begin in April or early May. This gives you enough time to assess your tax position, make strategic purchases or prepayments, ensure super contributions are received by funds, and chase any outstanding debtor payments. Leaving everything to the last week of June creates unnecessary stress and increases the risk of missing deadlines.

I am a sole trader arborist. Can I claim a deduction for tools I already own?

You can only claim depreciation or an immediate deduction on assets in the year they are purchased and first used for business purposes. If you bought tools in a prior year and already claimed them, you cannot claim them again. However, if you started using previously personal tools in your business for the first time this year, there may be a deduction available based on their market value at the time they were first used for business. Speak with your accountant about the specific circumstances.

Do I need to do a stocktake if I only carry a small amount of consumables?

Strictly speaking, all businesses that carry trading stock valued at more than $5,000 are required to conduct a stocktake at June 30. If your total consumable stock (fuel, chemicals, chains, parts, and similar items) is valued at under $5,000, you may be able to use an estimate rather than a detailed count. However, it is good practice to do a quick count regardless, as it helps keep your books accurate and can highlight stock you may have forgotten about.

What happens if I miss the June 30 deadline for super payments?

If super guarantee payments are not received by the funds on time, you become liable for the super guarantee charge (SGC). The SGC includes the unpaid super amounts, an interest charge (currently 10% per annum), and an administration fee of $20 per employee per quarter. Critically, the SGC is not tax-deductible, unlike normal super contributions. This means a late payment costs you more and provides no tax benefit.

Should I buy equipment before June 30 just to get a tax deduction?

Only buy equipment you genuinely need. A tax deduction reduces the after-tax cost of a purchase, but it does not make it free. The smart approach is to bring forward planned purchases you were going to make in the next few months anyway. If you were planning to buy a new chipper in August, buying it in May or June (provided it is delivered and ready for use before June 30) achieves the same business outcome while bringing the deduction into the current financial year.

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Next Steps: Get Your EOFY Strategy Right

The strategies in this guide can save you thousands of dollars in tax, but only if they are implemented correctly and in line with current legislation. Tax law changes regularly, and what worked last year may not apply this year.

At Arbour Advisory, we work exclusively with arborist businesses. We understand your equipment, your seasonal patterns, your contractor arrangements, and the specific deductions available to tree care operators. That focus means we do not waste your time explaining what a stump grinder is or why you need three chainsaws.

Book a free EOFY planning consultation with our team before the June rush. We will review your current position, identify the most relevant strategies, and make sure you are not leaving money on the table.

Get in touch with us today to schedule your consultation. The sooner you start, the more options you have.

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Disclaimer: This article provides general information only and does not constitute tax or financial advice. The information is current at the time of writing but may be subject to change. Every business situation is different, and you should seek professional advice tailored to your specific circumstances before making any financial decisions.

Need expert help with tax compliance? Explore our tax compliance services for arborists to stay on top of ATO obligations and maximise your deductions.

Related Reading

• How to Maximise Deductions as an Arborist Without Triggering an ATO Audit
• BAS Lodgement for Arborists: Deadlines, Common Mistakes, and How to Stay Compliant
• Seasonal Income Planning: How Arborists Can Use Tax to Smooth Cash Flow