Timber industry support programs

The Victorian Government has developed the Victorian Forestry Plan to assist the timber industry as it manages its transition away from native forest harvesting.

Under the plan, a more than$200 million in support provides workers, businesses and communities support for this transition, to retain industry, community capability and jobs.

The following grant programs are currently available:

  • Timber Innovation Grants program
  • Local Development Strategy grants.

The Timber Innovation Grants program supports businesses to transition from native timber to plantation fibre and transformative industry investment.

Objectives of program

To assist businesses directly affected by the Victorian Forestry Plan to:

  • explore opportunities to process or manufacture using plantation timber feedstock
  • develop new products using plantation timber
  • explore processing, harvest and haulage of alternative fibre
  • investigate downstream manufacturing opportunities using alternative fibre.

Applications for Round 1 closed Thursday, 31 March 2022.

Round 2 will open later in 2022.

The introduction of the Victorian Forestry Plan and the ceasing of native timber harvesting brings with it the need for impacted communities to start thinking about how it will change their communities.

As part of the plan, the Victorian Government is delivering Local Development Strategy grants in line with its promise to ensure that impacted communities are well supported through the transition.

The Local Development Strategy grants aim to assist communities significantly impacted by the Victorian Forestry Plan to undertake economic diversification planning to support their local economy and transition to new, sustainable industries.

A $22 million Community Transition and Development Fund has been established to support the delivery of early Local Development  Strategy outcomes.

The $36 million Victorian Forestry Plan Transition Fund also will support the implementation of the Local Development Strategy.

It is planned that the Community Transition and Development Fund and the Victorian Forestry Plan Transition Fund grants will be released in 2022.

Objectives of the Program

To assist communities impacted by the Victorian Forestry Plan to develop local development Strategy that:

  • support their transition away from native timber harvesting
  • lead to the creation of new jobs in sustainable industries, and
  • result in long-term economic and social benefits for each community.

The development of a local development strategy will be locally-led and undertaken in partnership with key stakeholders.

Funding details

The program has a total $5.5 million available over four years.

Grants of approximately $500,000 per town or community are available to support communities to develop new strategic plans or updating existing one, undertaking feasibility studies, research or economic assessments or engagement staff or consultants to undertake the tasks listed above.

Application Process

Step 1

A representative from the Victorian Forestry Plan transition team will work with each town or community and the associated local government area to determine which community organisation will prepare the grant application.

Step 2

A representative from the Victorian Forestry Plan transition team will contact the eligible community organisation to discuss the program, provide the on-line application form link and provide support to prepare the application, where required.

Step 3

For an application to receive funding through the program, the application must outline how the proposed project will develop a local development strategy that will:

  • support the transition away from native timber harvesting
  • lead to the creation of new jobs in sustainable industries, and
  • result in long-term economic and social benefits for the local community.

More information

The first round of the Forestry Business Transition Voucher program closed on 30 November 2021 and was fully subscribed.

Round 2 will be available in 2022.

The program offered access to tailored support through business service providers to equip affected forestry businesses with a better understanding of their business capabilities, options and strategies for transition.

This program is closed.

Phone 1800 318 182 or email victorianforestryplan@djpr.vic.gov.au if you would like more information about the Victorian Forestry Plan.

Page last updated: 1 April 2022