The incident happened around 1.30pm on a property near the intersection of 8 Mile Lane and Bradshaws Road.
The contractor was working with two others to remove blue gums on the property, but the tree fell on to a four-wheel drive and the man who was standing nearby.
A 27-year-old man who was in the vehicle was taken to Ballarat Hospital for observation.
WorkSafe investigators will return to the incident scene tomorrow.
It’s the second fatality involving tree-felling work this year.
In April, at Apsley near the South Australian border, a man died when a pine tree fell on to an excavator.
Today’s death is the 12th traumatic work-related death in Victoria this year and the seventh in regional Victoria.