- Discuss application with DEECA.
- Apply for the Package.
- Surrender the remaining allocation on their Forest Produce Licence(s) or Timber Sale Agreement.
- Receive payment.
- Exit.
On this page:
Overview
In May 2023 the Victorian Government announced the cessation of commercial native timber harvesting in State forests by 1 January 2024.
The government has opened applications for the Community Forestry Support Package and updated the Victorian Forestry Worker Support Program so that community foresters can access worker support payments ahead of Forest Produce Licences for commercial timber production ending on 30 June 2024.
Please note: The Department of Energy, Environment and Climate Action (DEECA) (the department) also issues Forest Produce Licences for a range of purposes other than timber. Over the next 6 months, the department will update policy to provide clarity on the scope and criteria for issuing future Forest Produce Licences. This will include consideration of licences for limited and very small-scale felling (low aggregate volumes) for niche industries, such as instrument making.
Accessing the Community Forestry Support Package does not prevent businesses from undertaking any future community forestry opportunities through DEECA.
What is in the package?
The Community Forestry Support Package is a payment the Victorian Government will make to Forest Produce Licensees and firewood operators with a VicForests Timber Sales Agreement for:
- a volume compensation payment
- a payment of up to $1,000,000 for non-fully depreciated plant and equipment used for native timber harvesting or processing operations
- a reimbursement payment for any employee statutory redundancy costs.
Forest Produce Licensees and firewood operators with Timber Sales Agreements can choose whether they want to exit straight away or nominate a date in the future and continue working until then.
Any workers who are made redundant as a result of a business taking a package are eligible for the Forestry Worker Support Program delivered by ForestWorks.
Who is eligible?
The scheme is open to:
- community forestry operators that hold a Forest Produce Licence or Forest Produce Agreement issued or administered by VicForests for timber supply in 2022-23 and/or 2023-24, that is not for the sole purpose of storm or bushfire salvage operations, as a one-off FPL or FPA for a defined period of time for a specific location; or
- non-contractor firewood customers that are party to a Timber Sale Agreement with VicForests for timber supply in 2023-24.
All businesses must:
- hold a current registered Australian Business Number (ABN), and
- declare that they meet all industrial relations obligations as an employer in accordance with the National Employment Standards under the Fair Work Act 2009 (Cth) if they are an employing business.
Exit pathways
Forest Produce Licensees can choose whether they want to exit straight away or nominate a date they want to exit in the future and continue working until then.
- Discuss application with DEECA.
- Apply for the Package.
- Continue operating until a nominated date on or before 30 June 2024.
- Surrender the remaining allocation on their Forest Produce Licence(s), Forest Produce Agreement(s) or Timber Sale Agreement(s) if before 30 June 2024.
- Receive payment.
- Exit.
Businesses that choose to continue operating are expected to work on any coupes offered by VicForests until 7 days before their nominated date or 30 June 2024. If the coupes are not taken up, the allocated volume may be deducted from the volume being compensated.
How to apply
The application can be made through an online form or a manual form with help from DEECA.
To apply contact members of the Forestry Transition Business Support Team to discuss your application:
Kara Zdrzalka
Email: kara.zdrzalka@rdv.vic.gov.au
Phone: 0417 483 803
Or contact communityforestry@ecodev.vic.gov.au
Apply online
- A copy of the current executed and dated Timber Sale Agreement with VicForests including any relevant Deeds of Amendment and/or a copy of the current executed and dated Forest Produce Licence administered by VicForests and/or a copy of the current executed and dated Forest Produce Agreement with VicForests.
- A declaration that the business is eligible to participate in the Package:
- holds a Forest Produce Licence or a Forest Produce Agreement issued or administered by VicForests that includes the supply of box ironbark, red gum, durable, speciality, common, or mixed species timber for 2022-23 and/or 2023-24 (if a community forestry operator); or
- is a party to a current Timber Sale Agreement with VicForests for timber supply for 2023-24 (if a non-contractor firewood customer); and
- holds a current registered Australian Business Number (ABN); and
- meets all industrial relations obligations as an employer in accordance with the National Employment Standards under the Fair Work Act 2009 (Cth) if they are an employing business.
- Confirmation the business is electing to follow one of the following pathways:
- The business is electing to immediately surrender all allocation on their FPL, FPA, or TSA. Upon receipt of the application, the department will calculate the Package payment and make an offer to the applicant, or
- The business is electing to nominate a date from when they will cease taking timber from State forests, but no later than 30 June 2024. As at the nominated date, the department will calculate the Package payment and make an offer to the applicant.
Component 1 – Timber volume
- Acknowledgement of the Timber volume as outlined in the letter sent by the department inviting an application for the Community Forestry Support Package. If the applicant considers the volume to be incorrect, they are encouraged to contact the Program Manager on communityforestry@ecodev.vic.gov.au. The final package payment will be subject to the process outlined in Section 2.
Component 2 – Plant and equipment compensation
- A copy of the business’s asset depreciation schedule that is Australian Taxation Office compliant
- Identification of the plant and equipment for which compensation is requested
- Agree to the department arranging for a valuer from the Valuer-General Victoria to visit the site, accompanied by a departmental officer, to undertake an independent valuation of all the eligible non-fully depreciated plant and equipment for which compensation is requested.
Component 3 (if applicable) – Employee statutory redundancy costs
- A spreadsheet detailing the employee statutory redundancy payments to be made to employees who are to be made redundant:
- Employee starting date
- Years of service
- Hourly rate
- Award
- Redundancy pay weeks
- Redundancy pay value
- Note that the information in the spreadsheet may be de-identified and not include employee names.
- A spreadsheet detailing the employee statutory redundancy payments to be made to employees who are to be made redundant:
Information sessions
Wednesday 6 December – Maryborough
The Highland, 35 High Street Maryborough
10:30 am to 12:30 pm and 2:00 pm to 4:00 pm
Thursday 7 December – Ballarat
State Government Offices, 402-406 Mair Street, Ballarat (entry via Doveton Street)
10:30 am to 12:30 pm and 2:00 pm to 4:00 pm
Thursday 14 December – Bairnsdale
Bairnsdale RSL Sub Branch, 2 Forge Creek Road, Bairnsdale
10:30 am to 12:30 pm and 2:00 pm to 4:00 pm.
Key dates
Application opening date: Friday 1 December 2023
Application closing date: 5pm on Friday 28 June 2024
Compensation component 1 – Volume compensation
The department will pay eligible Forest Produce Licence holders (including those who hold a Forest Produce Agreement) set rates for:
- up to 66.7% (approx. 8 months) of their Annual Supply Level volume from 1 November 2022 to 30 June 2023
PLUS
- the Annual Supply Level volume for 2023–24 as per the relevant FPL
MINUS
- any volume taken that is more than 33.3% (approx. 4 months) of the Annual Supply Level volume during 2022–23
- any volume taken during 2023–24.
The department will pay eligible non-contractor Timber Sale Agreement (TSA) holders set rates for:
- up to 66.7% (approx. 8 months) of their Annual Supply Level volume from 1 November 2022 to 30 June 2023
PLUS
- the minimum Annual Supply Level volume for 2023–24 as per the relevant TSA.
MINUS
- any volume taken that is more than 33.3% (approx. 4 months) of the Annual Supply Level volume during 2022–23
- any volume taken during 2023–24
- any compensation payments received from VicForests in 2022–23 and 2023–24 for the relevant Timber Sale Agreements.
For Timber Sale Agreements with an ‘up to’ volume amount, the minimum volume will be used for the calculation
Community forestry operators who have applied for compensation of 2023–24 licensed or contracted sawlog through the Sawmill Voluntary Transition Package (SVTP) will receive payment through that program. Any volume compensated through the SVTP will not be compensated through this Package.
Volume rates
The department will use the rates per unit to price the surrendered volume of timber.
If a harvest and haulage contractor is used to harvest and deliver timber to a Forest Produce Licensee, payment of the harvest and haul component of the timber price will be based on the evidence of that component amount being made to the relevant harvest and haulage contractor.
The conversion rates in Table 3 have been used to determine the schedule of rates in Table 1.
Table 1: Schedule of rates for fencing, firewood, and wood chop logs
| $/m3 | $/piece | $/tonne | |
|---|---|---|---|
| $/m3 | All species - all grades | All species - all grades | All species - all grades |
| Fencing | 120 | 20 | |
| Firewood | 80 | 100 | |
| Wood chop logs | 150 |
Table 2: Schedule of rates for Box Ironbark, Red Gum and durable species and Common and Mixed species sawlog
| $/m3 | $/m3 | $/m3 | |
|---|---|---|---|
| $/m3 | Class/grade 1 | Class/grade 2 | Class/grade 3 |
| Box Ironbark | 350 | 225 | n/a |
| Red Gum, speciality and durable species | 350 | 300 | 140 |
| Common and Mixed species | 300 | 140 | 125 |
Table 3: Conversation rates
| Original unit | Conversation rate | Converted unit |
|---|---|---|
| Stacked cubic metre (sm3) | 0.6 | m3 |
| Lineal metre | 0.3 | m3 |
Calculation examples
Business 1
Paul’s Firewood has an Annual Supply Level volume of 100 m3. Under this Package, Paul can receive compensation for up to 66.7 m3 in 2022–23 (8 months of annual volume).
He has taken 0 m3 in 2022–23 so he will be compensated for the full 66.7 m3 in 2022–23.
Paul will also receive compensation for up to 100 m3 in 2023–24, less any volume taken in 2023–24 for the final calculation.
Under this Package, Paul’s Firewood can receive a total compensation payment for up to 166.7 m3.
| Paul's firewood | Annual supply level volume | Volume taken | Eligible for compensation |
|---|---|---|---|
| Jul 2022 - Oct 2022 | 33.3 m3 | 0 m3 | 0 m3 |
| Nov 2022 - Jun 2023 | 66.7 m3 | 0 m3 | 66.7 m3 |
| Total 2022-23 | 100 m3 | 0 m3 | 66.7 m3 |
| 2023-24 | 100 m3 | Less volume taken | Up to 100 m3 |
| Potential Total Compensation | Up to 166.7 m3 |
Business 2
Andrew’s Logging has an Annual Supply Level volume of 500 m3. Under this Package, Andrew can receive compensation for up to 333.5 m3 in 2022–23 (8 months of annual volume).
He has taken 410 m3 in 2022–23 which is more than 4 months of the annual volume (166.5 m3), therefore, the difference of 243.5 m3 will be deducted from 333.5 m3 so Andrew will be compensated for 90 m3 for 2022–23.
Andrew will also receive compensation for up to 500 m3 in 2023–24, less any volume taken in 2023–24 for the final calculation.
Under this Package, Andrew’s Logging can receive a total compensation payment for up to 590 m3.
| Andrew's logging | Annual supply level volume | Volume taken | Eligible for compensation |
|---|---|---|---|
| Jul 2022–Oct 2022 | 166.5 m3 | 410 m3 | -243.5 m3 |
| Nov 2022–Jun 2023 | 333.5 m3 | 0 m3 | 333.5 m3 |
| Total 2022–23 | 500 m3 | 410 m3 | 90 m3 |
| 2023–24 | 500 m3 | Less volume taken | Up to 500 m3 |
| Potential Total Compensation | Up to 590 m3 |
Business 3
Jane’s Timber has an Annual Supply Level volume of 300 m3. Under this Package, Jane can receive compensation for up to 200.1 m3 in 2022–23 (8 months of annual volume).
She has taken 92 m3 in 2022–23 which is less than 4 months of the annual volume (99.9 m3), so Jane will be compensated for the full 200.1 m3 for 2022–23.
Jane will also receive compensation for up to 300 m3 in 2023–24, less any volume taken in 2023–24 for the final calculation.
| Jane's timber | Annual supply level volume | Volume taken | Eligible for compensation |
|---|---|---|---|
| Jul 2022–Oct 2022 | 99.9 m3 | 92 m3 | 0 m3 |
| Nov 2022–Jun 2023 | 200.1 m3 | 0 m3 | 200.1 m3 |
| Total 2022–23 | 300 m3 | 92 m3 | 200.1 m3 |
| 2023–24 | 300 m3 | Less volume taken | Up to 300 m3 |
| Potential Total Compensation | Up to 500.1 m3 |
Compensation component 2 – Non-fully depreciated plant and equipment
Rate calculation
The department will pay the difference between the non-fully depreciated value of the eligible plant and equipment and the current market value based on a valuation undertaken by the Valuer-General Victoria
To be eligible for the payment, plant and equipment must:
- be listed on the business’s ATO-compliant 2021–22 or 2022–23 depreciation schedule with a closing value of greater than $0.00
- be used primarily for the harvesting, hauling, or processing of timber
- not be a motor vehicle, IT and office equipment, and infrastructure. These will be considered as separate asset classes from the plant and equipment used for the processing of native forest timber and will not be included in the valuation.
The business can sell or donate the plant and equipment after a payment has been made.
If the valuation amount is less than the written down value for a piece of plant or equipment, the department will pay the difference, up to $1 million in total per eligible business.
If the valuation amount is greater than the written down value for a piece of plant or equipment, the department will not make a payment.
For example:
| Written down value | Current market value | Projected loss on sale | Departmental payment | |
|---|---|---|---|---|
| Item 1 | $250,000 | $20,000 | $230,000 | $230,000 |
| Item 2 | $100,000 | $130,000 | $0 | $0 |
If you have previously submitted an application for the Plant and Equipment Compensation through any other Forestry Transition program, you will not be able to receive a payment through Component 2 of this Package.
Compensation component 3 – Employee statutory redundancy costs
Reimbursement amount
The department will reimburse the business for employee statutory redundancy payments made by the business, capped at the maximum rate specified in the applicable Award or National Employment Standards.
The reimbursement amount will be based on the evidence of the redundancy payment being made to an employee and the redundancy is a genuine redundancy.
A genuine redundancy means:
- a worker’s position that is not required by the employer, in this case due to the consequence of the transition away from harvesting native timber from state forests and the dismissal is because of the redundancy of the position (and not for any other reason)
- there must be no arrangements (such as promise of another job) or other circumstances which indicate the redundancy is not genuine.
Some workers may be categorised as ‘dual capacity’ employees, in that they are engaged by an employing entity, and are also a decision-maker or officeholder of that entity. The department will seek to understand the nature of the termination in these circumstances to determine if there is a genuine redundancy.
Only actual redundancy amounts will be reimbursed. The department will not reimburse the payment of leave entitlements.
Frequently asked questions
It was important to the Victorian Government to get the package right.
We have spent time working with VicForests, Forest Produce Licensees, firewood operators with Timber Sales Agreements and the Australian Forest Contractors Associations to ensure the elements of the package are fit for purpose.
Forestry transition support will not stop on 1 January 2024.
Applications for the Community Forestry Support Package will close on Friday 28 June 2024.
This differs depending on the details of each Timber Sales Agreement. In most cases, these cease on 30 June 2024.
Forest Produce Licences for commercial timber production will end by 30 June 2024.
DEECA also issues Forest Produce Licences for a range of purposes other than timber. Over the next 6 months, the department will update policy to provide clarity on the scope and criteria for issuing future Forest Produce Licences – including the consideration of licenses for limited and very small-scale felling (i.e. 1 or 2 trees) for niche industries such as instrument making.
To be eligible for the payment, plant and equipment must:
- be listed on the business’s ATO-compliant 2021–22 or 2022–23 depreciation schedule with a closing value of greater than $0.00
- be used primarily for the harvesting, hauling, or processing of timber
- not be a motor vehicle, IT and office equipment, and infrastructure. These will be considered as separate asset classes from the plant and equipment used for the processing of native forest timber and will not be included in the valuation.
Seed collectors will be able to access plant and equipment payments and redundancy reimbursements through the Forestry Business Support Package when it is released.
Seed collectors can access payments and support through the Victorian Forestry Worker Support Program.
The value of individual packages will vary, depending on the details of their specific Forest Produce Licence, Forest Produce Agreement, or Timber Sale Agreement.
The program is voluntary and no business is required to participate.
No, a business can nominate when they want to exit ahead of 30 June 2024.
However, businesses who choose to continue operating are expected to work on any coupes offered by VicForests until 7 days before their nominated date/ 30 June 2024. If the coupes are not taken up the allocated volume may be deducted from the volume being compensated.
Taxation rates are the responsibility of the Australian Taxation Office.
You may want to contact them or independent financial advice for more information.
The department will use the rates per unit to price the surrendered volume of timber.
If a harvest and haulage contractor is used to harvest and deliver timber to a Forest Produce Licensee, payment of the harvest and haul component of the timber price will be based on the evidence of that component amount being made to the relevant harvest and haulage contractor.
The department will arrange for a valuer from the Valuer-General Victoria to visit the site, accompanied by a departmental officer, to undertake an independent valuation of all the eligible non-fully depreciated plant and equipment that has been listed by the applicant in their Application.
The valuation of plant and equipment can be undertaken in a day. The date of the valuation will be by agreement with the business.
Payment will be made once:
- the Minister for Agriculture approves a package
- a Letter of Offer is made and accepted
- a Grant Agreement is signed
- Any unpaid moneys to VicForests is paid and a Deed of Termination and Release for Timber Sale Agreements entered into with VicForests.
If a business receives a package and intends to make some or all of their workforce redundant, the business will be required to do the following from the date an application is submitted:
- issue a written notification to employees regarding their redundancy and final employment date and provide an Employment Separation Certificate form to certify important employment information.
- provide employees with the opportunity to participate in an agreed program of pre-redundancy training, including onsite skills audit and/or verification and other Victorian Forestry Worker Support Program activities, with the cost of any leave to be at no cost to the employee or the State; and
- provide access for the department’s worker support program staff to engage with employees regarding the Victorian Forestry Worker Support program, with the access to employees to be provided at no cost to the department or employees.
All Victorian native timber workers are eligible for the Victorian Forestry Worker Support Program.
Workers can contact ForestWorks on 1800 177 001 to register and connect with a Worker Assistance Coordinator.
ForestWorks is the primary service provider for the Worker Support Program and support is available now including:
- Worker Support Payments including redundancy top-up payments, relocation payments and $3000 one-off hardship payment.
- Worker Support Services.
- 1:1 case management.
- Recognition of prior learning.
- Funded Training.
- Employment support and job matching.
- Health and wellbeing support.
- Referrals to other support agencies.
Community forestry workers can access worker support payments including redundancy top-up payments, over 45s payment, relocation payments and a $3000 one-off community forestry hardship.
Page last updated: 21/12/23