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An announcement was made on 23 May 2023 regarding a revised timeline for Victoria’s native timber transition: Delivering Certainty For Timber Workers.

Native timber harvesting in Victoria’s state forests will end by 1 January 2024 with existing supports being brought forward and scaled up.

There are a range of supports available for businesses to support them through this transition.

Get in touch

For support in your area, please contact:

Sawmill businesses and harvest and haulage contractors:

  • Gippsland: Andrew van der Kaap, Business Transition Support Coordinator, 0417 992 636
  • Rest of Victoria: Kara Zdrzalka, Business Transition Support Coordinator, 0417 483 803
  • Forestry Transition Team on 1800 318 182.

Supply chain manufacturers impacted by the native timber transition:

Mental health support

Dedicated mental health support is available in your area if the forestry transition process is affecting your health and wellbeing, or people you know are being affected.

Support is available through the Victorian Timber Innovation Grants Program to assist affected forestry businesses to transition from native timber to plantation fibre and transformative industry investment.

Round 2 of the program is currently open.

Eligibility of Round 3 will be extended to harvest and haulage sub-contractors, chip truck drivers and other forestry businesses impacted by the Forestry Transition. Victorian Timber Innovation Fund Round 3 is planned to open in September.

Victorian Timber Innovation Fund Round 1 recipients

Australian Sustainable Hardwoods – Heyfield
  • Engineered Flooring Manufacturing Line and Retail Supply Chain – $1,619,000
  • MASSLAM Finishing and Storage and Reconditioner Project – $1,201,500
Radial Timber – Yarram
  • Small Log Line – $325,000
  • Hardwood Reconnaissance Project – $17,000
  • Plantation Processing Trials – $50,000
Longwarry Sawmill
  • Recycled Timber Project – $202,142
Ryan & McNulty – Benalla
  • Plantation-based manufacturing project - $100,000
Brunts Harvesting – Orbost
  • Forestry Innovation Transition Feasibility Study – $40,000
Talbot Timbers
  • Plantation Timber research and Feasibility Study – $82,758
Eddy Enterprises – Mansfield
  • Heavy Equipment Clean Up Feasibility Study Project – $89,875
Samaria Contracting
  • Excavation and Plantation Timber Processing Feasibility Study – $68,765
CDH Contracting – Alexandra
  • Alternative Timbers Business Transition Project – $71,238
Clark Generation – Healesville
  • Forestry Residue Utilisation Project Business Plan – $97,810

Sawmill Voluntary Transition Packages are now available.

These packages compensate sawmills for contracted timber that will not be delivered in 2023-24 and provide plant and equipment payments and reimbursement of statutory redundancy payments.

It will provide a payment for businesses as compensation for having to cease purchasing Victorian native timber early.

The Forestry Transition Fund provides grants up to $1 million for businesses and industry groups - including chambers of commerce and associations, peak bodies and businesses networks - to apply for grants to expand, diversify or start new businesses.

Applicants that directly employ displaced native timber workers will receive a $20,000 wage subsidy per worker in addition to their grant.

Funding is also available to local councils, water corporations and utility providers to make sure there is the right infrastructure in place to support businesses’ applications.

Community Forestry

Forest Produce Licence operations will continue until the licences expire on 30 June 2024.

Forest Produce Licence holders will be able to access a new Community Forestry Support Package in October which will include:

  • Compensation payments for undersupply since November 2022
  • Plant and equipment payment
  • Reimbursement of statutory employee redundancy payments
  • Worker Support Payments and training

Support is available through the Victorian Timber Innovation Grants Program to assist affected forestry businesses to transition from native timber to plantation fibre and transformative industry investment.

Round 2 of the program is currently open.

Eligibility of round 3 will be extended to harvest and haulage sub-contractors, chip truck drivers and other forestry businesses impacted by the Forestry Transition. Victorian Timber Innovation Fund Round 3 is planned to open in September.

The Forestry Transition Fund provides grants up to $1 million for businesses and industry groups - including chambers of commerce and associations, peak bodies and businesses networks - to apply for grants to expand, diversify or start new businesses.

Applicants that directly employ displaced native timber workers will receive a $20,000 wage subsidy per worker in addition to their grant.

Funding is also available to local councils, water corporations and utility providers to make sure there is the right infrastructure in place to support businesses’ applications.

Sawmill Voluntary Transition Packages are now available for Forest Produce Licence holders who operate a sawmill.

These packages compensate sawmills for contracted timber that will not be delivered in 2023-24 and provide plant and equipment payments and reimbursement of employee statutory redundancy payments.

It will provide a payment for businesses as compensation for having to cease purchasing Victorian native timber early.

Non-timber business support

The Forestry Transition Fund provides grants up to $1 million for businesses and industry groups - including chambers of commerce and associations, peak bodies and businesses networks - to apply for grants to expand, diversify or start new businesses.

Applicants that directly employ displaced native timber workers will receive a $20,000 wage subsidy per worker in addition to their grant.

Funding is also available to local councils, water corporations and utility providers to make sure there is the right infrastructure in place to support businesses’ applications.

Support is available through the Victorian Timber Innovation Grants Program to assist affected forestry businesses to transition from native timber to plantation fibre and transformative industry investment.

Round 2 of the program is currently open.

Eligibility of round 3 will be extended to harvest and haulage sub-contractors, chip truck drivers and other forestry businesses impacted by the Forestry Transition. Victorian Timber Innovation Fund Round 3 is planned to open in September.

The Forestry Transition Fund provides grants up to $1 million for businesses and industry groups - including chambers of commerce and associations, peak bodies and businesses networks - to apply for grants to expand, diversify or start new businesses.

Applicants that directly employ displaced native timber workers will receive a $20,000 wage subsidy per worker in addition to their grant.

Funding is also available to local councils, water corporations and utility providers to make sure there is the right infrastructure in place to support businesses’ applications.

Planning is underway for Harvest and Haulage contractors to be engaged to deliver DEECA land management works for the longer term.

This detail is still being worked through by the various agencies to ensure contractors can be offered work in the forests and contribute to bushfire risk reduction.

Harvest and Haulage businesses will be offered the option to remain and undertake land and fire management activities or exit and havbe contractual obligations be paid out.

A Harvest and Haulage Support Package will be available in September.

The package will include:

  • a payment for a business’s remaining 2023-24 contract value
  • a plant and equipment payment
  • reimbursement of statutory employee redundancy payments.

The package will be released in line with the DEECA land management work packages so that businesses can consider whether they continue doing land management works and what kind of support they need.

The specifics of the package have not been finalised and may change.

Contractors will be able to access different components of the package depending on whether they take up DEECA land management contracts.

Forest and land management work FAQs

The package will be released in September once it has been finalised. This also allows Harvest and Haulage businesses the opportunity to consider whether they continue undertaking DEECA land management works and what kind of support they may need.

No, you do not have to take up any support.

The specifics of the package have not been finalised.

Yes, if you take up DEECA works you can access a plant and equipment payment through the package.

Yes, if you take up DEECA works you can access a plant and equipment payment through the package.

Yes. You will be able to apply for plant and equipment compensation

It is planned to provide contractors with the option to contract for DEECA work or to exit the industry in September.

Contractors currently receiving payments will continue to do so. This includes stand-down payments from VicForests for any period of inactivity within their contracted period.

Harvest and haulage contractors will be engaged in the delivery of:

  • strategic fuel breaks
  • ongoing recovery works on public land
  • the treatment of hazardous trees in the preparation of planned burns and along critical firefighting roads and tracks.

For the time being, VicForests will manage existing contracts and work closely with DEECA to deliver land management services.

As long as harvest and haulage operators meet their contractual obligations with Government, other work can be carried out.

Through additional Government investment, contractors will:

  • Maintain the strategic fire road network, Strategic Fuel Breaks network and visitor and recreation facilities.
  • Undertake seed collection, silvicultural works (including regeneration of historic coupes and fire-affected areas) and hazardous tree treatment.
  • Work on roads, bridges and crossings.
  • Bushfire risk reduction works, including storm debris removal and planned burning preparation.

Forest and fire management works require a mix of skills, many of which are consistent with timber harvesting and haulage including:

  • operating in steep terrain
  • heavy debris handling
  • landing construction where required
  • hazardous tree removal
  • haulage.

DEECA land management focuses on minimal footprints and uses smaller crews, smaller machines and old snig tracks. It typically needs machine equipment such as harvesters, excavators with log grabs, trucks and floats. Skid steers are also being used in the storm debris operation.

Any contract extensions are optional. It is not predicted that VicForests contracts will be extended beyond their current expiry date. Suitable contracting options are being considered for future forest fire management activities.

Gippsland National Institute of Forest Products and Innovation (NIFPI)

The Gippsland National Institute of Forest Products and Innovation (NIFPI) was established in 2020 as a hub of expertise and collaboration across the forest industry.

Since July 2021, over $8.4 million has been granted for eleven research projects.

The NIFPI receives administrative support from Forest and Wood Products Australia. It promotes cutting-edge research to secure investment and boost the sector and future jobs in Gippsland.

Page last updated: 23/08/23