The Australian Government has announced a $150 million investment to support forestry industry growth, including funding aimed at transforming wood-product manufacturing and expanding domestic processing capabilities.
Announced on 3 September, the funding will be delivered through five streams under the Forestry Growth Fund, with up to $85 million earmarked for large-scale investments in modern wood-product processing, value-adding and facilities designed to significantly transform manufacturing capabilities.
A further $30 million will support innovation aimed at improving efficiency and productivity across the forestry supply chain, while up to $15 million will be allocated to workforce development.
The government will also provide up to $15 million in additional support for plantation establishment to increase the supply of domestic forest resources for Australia’s manufacturing and construction needs. Another $5 million will fund tools to support compliance with illegal logging laws and reduce the risk of illegally logged or conflict timber entering supply chains.
Minister for Agriculture, Fisheries and Forestry Julie Collins said the measures were intended to support jobs and higher-value production, particularly in regional Australia.
“Australia’s forestry industry has a bright future and our Government is committed to delivering new opportunities to make this happen,” Collins said.
“This will mean more secure jobs, better pay and high-value outputs, particularly in regional Australia.”
The investments form part of the broader $300 million Forestry Growth Fund, which also includes $150 million in concessional finance for advanced manufacturing investments by wood-product processors, including mills and manufacturers.
The government said applications for this finance are open through the National Reconstruction Fund Corporation, while development of the new grant programs is underway and the first grant opportunities are expected to open in the coming months.
The measures support the government’s Timber Fibre Strategy and follow consultation with industry, unions, communities, and state and territory governments, according to the Australian Government.
“These investments we are announcing today demonstrates the Albanese Labor Government’s commitment to our world-leading forestry-sector, recognising the significant economic, environmental and social benefits it delivers for everyday Australians,” Collins said.
