Hi Donna I tip prune all my natives, but only cut off that odd bit.I would not hard prune them.
Just tip prune or pinch back the new growth to make it bushier....MM

i have 30 lillypillies that i want to form a hedge around the garden - they are 3 1/2 foot tall - and quite sparce - i want them to grow about 6 foot tall in a dence hedge. I understand the concept of pinching off the new growth - should i do this now or wait till they get more hight? (currently they are quite bare down the bottom and a bit bushier at the top) - thankyou for your advise ( someone told me to allow them to grown 6 foot prior to starting to prune them....