Australian timber industry news

An upgrade to Tigercat’s latest telematics firmware has added functionality, an improved user interface, and taken advantage of the latest advanced engine diagnostics capabilities. Source: Timberbiz The firmware V4.0 update offers enhanced features for a more comprehensive telematics experience including an updated LogOn web interface, with the inclinometer on the main screen and a dedicated text messaging icon. With the latest update, LogOn puts more diagnostic and repair resource in your hands. Users with RemoteLog equipped machines now have the ability to perform an inducement unlock without the need for an unlock PIN. In addition, the complete service manual for the machine can be accessed with LogOn. The LogOn interface provides easy-to-understand steps to diagnose issues, directly referencing the appropriate section of the service manual. Several diagnostic tests can be initiated directly from LogOn to further diagnose the underlying reason for the fault code. CAN Analyzer can now capture CAN data based on a trigger that can be set to either an ArbID or a PGN. The capture will stop after the specified time post trigger when the trigger is detect-ed, or on the Stop button. A bulk recorder has been added that records all CAN traffic until clicking Stop or when the recording file size reaches a maximum size. A complete Engine ECU Stores Data report is now generated when requesting stored data from the ECU. Engine and aftertreatment diagnostic tests: The Compression Test detects relative low cylinder compression by controlling fuel and measuring crankshaft speed during engine cranking The Runup Test checks the fuel injection system for proper operation and perfor-mance The High Pressure Rail Test checks the fuel rail system for proper operation and performance, including fuel rail pump performance, system leakage, fuel pressure regulator tightness variation, and fuel pressure control instability The Exhaust Flap Valve Test runs a sequence of position requests to the exhaust flap actuator and compares the requested positions to the actual positions Several aftertreatment tests including the Urea Dosing System Test (UDST), Urea Dosing Pump Check (UDPC), and Urea Dosing Leakage Check (UDLC)   Colour coding has been added to the Engine Diagnostics reporting screen to make it easier to comprehend the status of the test. This applies to all the tests available in Engine Diagnostics.

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Sumitomo Forestry has been named in the Dow Jones Best-in-Class World Index (DJ BIC World), a globally renowned ESG investment equity index. In this index, Sumitomo Forestry secured the top score in the homebuilding industry (among 16 eligible companies) for the fifth consecutive year. Source: Timberbiz In addition, Sumitomo Forestry has also been included in the Dow Jones Best-in-Class Asia Pacific Index (DJ BIC Asia Pacific), an index comprised of Asia Pacific companies. This is the 18th time Sumitomo Forestry has been included in the Dow Jones Best-in-Class Indices (DJ BIC) since first selected in 2005. Launched in 1999, the DJ BIC series are sustainability-related equity indices announced yearly by the US company S&P Dow Jones Indices. Companies are evaluated and analysed on their sustainability practices based on economic, environmental, and social criteria and those that demonstrate superior performance are selected for inclusion. DJ BIC World comprises global sustainability leaders as identified by S&P Global through the Corporate Sustainability Assessment (317 companies, of which 35 companies are Japanese).. In addition to the DJ BIC series, Sumitomo Forestry has been selected for ESG indices adopted by Japan’s Government Pension Investment Fund, one of the world’s largest pension funds. Every year, Sumitomo Forestry publishes the Sumitomo Forestry Group Sustainability Report on its corporate website to provide information on the Group’s sustainability initiatives to investors and a wide variety of other stakeholders. Sumitomo Forestry Group formulated Mission TREEING 2030, a long-term vision with 2030 as target year, the same target year as the United Nation’s SDGs. In this long-term vision, the company defined nine material issues from the perspective of providing value for the planet, for people and society, and for the market economy.

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Forest owners are interested in the voluntary protection of their forests, offering more than 1,000 hectares for the first application round organised by Metsä Conservation Foundation.  Source: Timberbiz These 85 sites represent diverse forests from all over Finland. “I’m very pleased with the number of applications. Information about Metsä Conservation Foundation has reached forest owners well. The interest shows there’s demand for voluntary forest conservation,” said Shaheena Turak, manager of Metsä Conservation Foundation. Metsä Conservation Foundation provides funding for the permanent protection of forest sites with high biodiversity value in Finland. The goal is that the protected area remains in the ownership of the forest owner. The forest owner initiates the conservation process. Metsä Conservation Foundation’s first application round received the most applications from Lapland, North Ostrobothnia, North Karelia and South Savo. In terms of area (hectares), the largest share was offered from Lapland. The sites offered for conservation vary in size from one hectare to more than 100 hectares. Next, Metsä Conservation Foundation’s Conservation Committee will evaluate the sites. Forest owners who have submitted an application will be notified from June onwards whether their site will be conserved through Metsä Conservation Foundation. The Conservation Committee will visit the best sites, after which the Foundation’s Board will confirm the conservation decisions. Forest owners will be notified during autumn if the Metsä Conservation Foundation wants to protect their site. Based on current estimates, the first conservation decisions are expected to be made public around the turn of the year. “It’s clear that, unfortunately, we’ll not be able to protect all valuable offered sites, which means that even some good sites will not receive funding. Our goal is that in the coming years, the volume of conservation increases, and the foundation attracts more partners,” Turak says. Metsä Group’s parent company Metsäliitto Cooperative founded Metsä Conservation Foundation in 2025 to meet the need for additional protection of forests with significant nature value in Finland. The foundation aims to complement both the existing conservation networks of valuable forests and the variety of protection methods. The foundation also wants to inspire new operators to join conservation work.

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Students at Mount Gambier’s Limestone Coast Technical College are gaining direct exposure to the future of bushfire detection and emergency response technology, following the integration of real-world bushfire footage captured by Pano AI’s advanced detection network. Source: Timberbiz Using the College’s immersive learning environment, Igloo, students recently viewed historic footage from the March 2025 Fox fire in South Australia’s south-east, a fast-moving blaze that triggered emergency warnings as crews battled extreme heat, strong winds and dense scrub. More than 100 firefighters and aerial resources were deployed as the fire burned through hundreds of hectares under challenging conditions. The footage, captured via Pano AI’s panoramic detection cameras operating in partnership with the Green Triangle Fire Alliance and supported by a $2.5 million investment from the South Australian Government, demonstrated how artificial intelligence and high-definition imaging can detect smoke signatures in their earliest stages, providing critical minutes of advanced warning to fire agencies and land managers. Pano AI’s detection network is strategically deployed across the Green Triangle region, supporting coordinated early detection capability across commercial forestry estates, agricultural land and surrounding communities. “By combining 360-degree panoramic cameras, AI-powered detection and human verification, Pano AI provides early smoke detection and real-time situational awareness for fire agencies during high-risk conditions,” said Andrew Prolov, Head of Australia GTM at Pano AI. “Across the Green Triangle, this detection network is helping protect forestry estates, farms and regional communities by identifying ignitions earlier and giving responders critical extra time to act before incidents escalate.” South Australian Forest Products Association’s Nathan Paine said that bringing operational detection footage from a real incident like the Fox fire into the classroom transformed how students understood technology’s role in emergency response. “These are the systems already protecting landscapes across the Limestone Coast. Students are not learning about hypothetical future tools, they are seeing the infrastructure that is actively protecting their own region,” he said. Limestone Coast Technical College is designed to deliver hands-on, industry-aligned training in sectors critical to South Australia’s economic future. Integrating advanced detection technology into the learning experience reinforces the evolving nature of trades, engineering and land management roles where digital systems, automation and real-time data now sit alongside traditional practical skills. “It is great to be able to work with our industry partners on real world content,” Jason Plunkett, Industry Training Specialist at the Limestone Coast Technical College said. “Having the students see how their learning can be translated into real world settings is incredibly valuable. Being able to keep the material current is an amazing opportunity and allows the students to consider recent community issues when developing their understanding.” As climate pressures intensify and bushfire seasons become more complex, early detection technology is increasingly recognised as essential infrastructure. By connecting students to live examples of AI-enabled emergency management, Limestone Coast Technical College is helping prepare a workforce capable of operating, maintaining and advancing the technologies that underpin regional resilience. Through its ongoing partnership with the Green Triangle Fire Alliance, Pano AI continues to strengthen early detection capability while contributing to the development of future-ready technical skills in South Australia’s south-east.

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Tasmanian farmers and landowners will have access to free resources and events to learn about how carbon forestry works as part of Private Forests Tasmania’s new Carbon Forestry 101 project. Source: Timberbiz Supported by the Tasmanian Government’s Renewables, Climate and Future Industries (ReCFIT), Carbon Forestry 101 will be rolled out from 2026-2028 to Tasmanian farmers and landowners. The project will see all information about carbon forestry brought together into the one place and unpacked in plain, easy to understand language without the jargon. This will include information on carbon science, carbon forestry methodologies, carbon markets (what are they) and governance. It will also cover off on the sustainability integration of carbon forestry projects and their benefits across entire properties. Private Forests Tasmania’s Chief Executive Officer, Dr Elizabeth Pietrzykowski said Carbon Forestry 101 was a learning experience. “We hope this project will give Tasmanian farmers and landowners the knowledge and confidence to make informed decisions about carbon opportunities for their properties. “Information about carbon and carbon forestry can be complex and full of jargon. It is also available through different channels but can rarely be found in the one space or solely with a Tasmanian context. “Carbon Forestry 101 will address this exactly and will be a great way for farmers and landowners to enhance their knowledge before committing to undertake a carbon forestry project.” Dr Pietrzykowski said carbon forestry projects are not a ‘one-size-fits-all’ situation and often are most successful when they are integrated in addition to existing farming enterprises and can be navigated with clear awareness of the opportunities and risks. “We know that farmers and landowners know their land best. They understand where its most productive, least productive and are managing complex risks and changing conditions and costs every day. “Carbon forestry projects have been around for a while now but are becoming increasingly appealing for their environmental, economic and sustainability benefits. “It can be difficult to know where to go to even start to understand what it is and how it works. “Private Forests Tasmania’s Carbon Forestry 101 will bring all the pieces of carbon forestry together.” The Carbon Forestry 101 project was formally launched at Agfest, at site 809 in the TasFarmers tent. Farmers and landowners’ interested in being part of Carbon Forestry 101 are encouraged to register their interest in the project by providing their details to Private Forests Tasmania. TasFarmers Chief Executive Officer Nathan Calman welcomed the project, highlighting the role farm forestry can play in strengthening on-farm outcomes. “The TasFarmers’ Forestry Committee have worked closely on the benefits farm forestry can generate, and we’re pleased to see this project launched,” Mr Calman said. Tasmanian farmers and landowners wishing to register for Carbon Forestry 101 can do so by visiting www.pft.tas.gov.au/carbon-forestry-101 For more information about Carbon Forestry 101, contact Private Forests Tasmania by calling 1300 661 009 or emailing admin@pft.tas.gov.au  

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The New Zealand Forest Owners Association (NZFOA) says the latest set of changes to the National Environmental Standards for Commercial Forestry (NES-CF) are an important step toward a more nationally consistent and risk-based framework for managing forestry activities across New Zealand. Source: Timberbiz NZFOA chief executive Dr Elizabeth Heeg says the changes, due to come into effect on 4 June as part of the wider Resource Management Act reforms, better align regulatory oversight with the site-specific risks associated with New Zealand’s diverse forestry landscapes. “Forestry operates across highly variable terrain and environmental conditions,” Dr Heeg said. “Regulation needs to reflect those differences rather than assume every site carries the same level of risk. “Ensuring there is a nationally consistent framework remains of critical importance to forest owners, but not at the expense of applying identical rules regardless of landscape, erosion profile or catchment sensitivity. “Durable environmental outcomes require regulation that is consistently applied and reflects actual environmental risk across different forestry environments. “A forest in rolling hill country, for example, presents different risks to steep land above a sensitive catchment. The updated NES-CF is better equipped to recognise those differences and risks.” Dr Heeg says the NES-CF changes are emblematic of an evidence-based approach to environmental management, particularly on steep and erosion-prone land. “Forest owners have seen how differing interpretations of environmental rules between regions can create uncertainty, duplication of rules and cost burdens without improving environmental outcomes,” she said. “The latest changes strengthen the ability to focus regulatory requirements where environmental risk is higher, while allowing decisions to better reflect site-specific conditions. This is a more practical and targeted approach to managing environmental risk.” The reform will also provide more certainty for forest owners, contractors, councils and communities. “Forestry is planned over years – often decades. Decisions about planting, roading, harvesting and replanting rely on regulation that is clear, grounded in evidence and workable in practice,” Dr Heeg said. “Greater national consistency will provide more certainty around how forestry activities and environmental risks are managed across the motu.” The Association says the introduction of a Slash Mobilisation Risk Assessment framework is a practical example of a more risk-based approach being applied in practice. It recognises assessments developed and relied on, by the sector and by councils. “Post-Cyclone Gabrielle, the sector has been adapting management practices for higher-risk environments, particularly around slash management, erosion risk, harvest planning and decision-making on more complex sites,” Dr Heeg said. “The proposed framework reflects ongoing work to continually improve how harvest residue risk is identified and managed across different environments and terrain types. “It enables higher-risk sites to be identified more consistently, so management efforts can be focused where they are most needed, while still allowing for different approaches depending on the nature of the land and the level of environmental risk involved.” Dr Heeg says it’s important that forestry regulation has scope to evolve as science, operational experience and changing climate conditions shape what best practice looks like in the field. “Forestry needs a system that supports long-term investment, protects the environment and keeps people safe, while allowing practices to continue improving over time,” she said. “That is particularly important in higher-risk environments, where operational decisions can involve steep terrain and complex conditions, and where managing the safety of people working on the ground is integral to how work is planned and carried out. “Forest owners support regulation that can adapt as science, data and operational experience evolve. But as always, the detail of how these changes are implemented will be critical to whether they achieve their intent in practice.”

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A major NSW forestry consultation has highlighted the Tumut region’s importance to Australia’s softwood processing industry, while revealing divisions over forest management and bushfire resilience. Source: Tumut and Adelong Times The NSW government last week published its Independent Forestry Panel Stakeholder Consultation Report, a step towards the development of a Forest Industry Action Plan (FIAP). The panel received written submissions from over 1500 individuals and 160 organisations representing a cross-section of the timber industry, environmental groups, researchers, residents and businesses from regional NSW and others, guided by six prompts based around areas to be ad-dressed in the FIAP. While the report focuses primarily on native forest harvesting, it also addresses the softwood industry in the Snowy Valleys and across the state. It groups Tumut within its Coastal (Southern) forestry region, which it described as Australia’s most concentrated softwood processing area. The report identified several shared objectives across submissions, including bushfire resilience however, stakeholders differed on how forests should be managed to achieve that. “Some [say] that timber harvesting, salvage logging, and silviculture techniques like thinning reduce bushfire risks and others [say] that harvesting, salvage logging and thinning all increase bushfire frequency and intensity,” the report reads. “Despite that divergence, the submissions clearly demonstrate a deep shared concern about bushfire risk now and in the future, and that there is urgent need for improved fire policy and management based on empirical evidence and up-to-date scientific consensus.” The report notes different cohorts have different conceptions of what ap-propriate active management of forests for fire resilience is. “Some favour hazard reduction burning and robust fuel load reduction methods … Others caution that this approach only works in some forest types and that a much more nuanced, adaptive and multifaceted approach is needed.” The report noted some stakeholders highlighted “the strong capacity of Forestry Corporation’s staff and other timber industry workers to cost-effectively prepare and respond to bushfire threats as being highly valuable.” “Previous reviews have noted that the Forestry Corporation is a statutory firefighting authority and plays a role in fire management in native forests,” the report said. “Forestry Corporation’s workforce includes trained firefighters who carry out fire mitigation and hazard reduction (including fire trail maintenance, specialist tall tree felling skills), training and maintenance programs, a large fleet of heavy machinery and equipment and supply agreements to enable quick uplift in people, plant and equipment and firefighting response in co-ordination with other agencies.” The Independent Forestry Panel is chaired by Peter Duncan with other panel members Professor Mary O’Kane and Mick Veitch. A ministerial statement from the offices of the minister for agriculture, the minister for energy and climate change, and the minister for environment and heritage thanked all those who made submissions and attended focus groups and stakeholder interviews. “Making this report available to the public is a key step towards modernising forestry in a way that protects biodiversity,” the statement reads. “Following the finalisation of the stakeholder report, the panel has been tasked to produce a considerations report. “This report will accommodate the stakeholder report findings and identify opportunities to ensure the ongoing sustainability of the NSW forestry industry and support jobs, in the context of recent and ongoing changes.” The stakeholder report can be read in full at: https://www.nsw.gov.au/departments-and-agencies/cabinet-office/resources/independent-forestry-panel-stakeholder-report

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Timber NSW has lodged a submission to a Senate inquiry lobbying the Federal government, the inquiry is looking at the effectiveness of sanctions against the Russian Federation. The submission is signed by Timber NSW Chief Executive Maree McCaskill. Source: Timberbiz In its submission Timber NSW says it represents the timber and forest products industry in NSW. The membership of Timber NSW comprises sawmillers, plantation owners, harvest and haul contractors in the hardwood industry, and manufacturers who use low-grade hardwood products to produce high-value products for local use and export. The submission is the result of claims that Russian timber is being moved through China and Southeast Asia and that tariffs are not enough to stop this trade. According to the submission, in 2022, Australia imposed a tariff on timber imports from the Russian Federation and on Belarusian timber products. The tariff was an additional 35% on all imports from Russia and Belarus, including timber products, effective from 25 April 2022. The Russian timber industry supplies 63% of China’s softwood lumber imports and the submission states that while tariff measures could act as a deterrent it does not capture timber products that incorporate Russian timber in manufactured goods. The submission states that China is turning Russian logs into engineered wood products with record shipments to Australia, mainly LVL formwork, which represents 40% of the Australian market, and plywood In 2024 Dr Madeline Osborn, Acting Director, Department of Agriculture, Fisheries and Forestry, said that between 15% and 30% of all timber traded globally is potentially illegally logged, and 10% potentially in the Australian market is illegally sourced. Dr Osborn also said that about 25% of products tested had inaccurate species and origin claims. Timber NSW says the government should reference how the EU, UK and the US have improved compliance methodologies regarding timber sanctions. Australia should utilise the Autonomous Sanctions Act 2011 (Cth) and issue a declaration pursuant to section 10(1)(c), sanctioning Russian-produced timber in both direct and indirect imports. This section authorises the use of the Regulations to make such a restriction, and this might be achieved by amending the Autonomous Sanctions (Import Sanctioned Goods – Russia) Designation 2022 by the addition of the words “Item 17 Timber and timber products directly or indirectly sourced from Russia.” This inquiry will accept public submission until 12 June and report by 20 August.  It is expected that other associations in the timber trade will also make submissions in the near future. The full submission can be downloaded here.

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Timber Towns Victoria met with six Political parties in Victoria this week calling for pre-election commitments on three policies, one of which proves technology that has already detected 90 unplanned fires across Victoria in two seasons. Source: Timberbiz Timber Towns Victoria met with representatives this week from the National, Liberal, Labor, One Nation, Shooters and Fishers, and Libertarian parties at the Victorian Parliament, presenting a three-priority 2026 Government Brief ahead of the state election on November 28 this year. TTV’s priority ask is calling for multi-year funding commitments for rural road repairs and dedicated funding for freight-critical bridge upgrades, citing accelerated deterioration across key regional corridors under heavier freight loads and more frequent severe weather events. TTV President Cr Karen Stephens said roads were vital for the freight network as logs could not be moved by rail due to the rural spread of plantation areas. “We ask for a commitment to strengthening Victoria’s regional transport network by in-creasing roads and bridges maintenance funding, and prioritising long-term, durable solutions that support community safety and economic resilience,” Cr Stephens said. TTV also wants a statewide expansion of AI-enabled fire detection cameras. The network has already detected almost 90 unplanned fires across Victoria over the past two fire danger seasons — 40 in 2023-24 and 46 in 2024-25. In South Australia, the same system has detected almost 90 fires since rollout across more than one million hectares, with 90 per cent of coverage extending beyond plantations into surrounding communities. The data was provided to TTV by the Victorian Forest Products Association (VFPA) and the Green Triangle Fire Alliance (GTFA), which manages the network across both states. Cr Stephens said regional communities were looking for firm commitments. “We ask for a commitment to supporting a safer Victoria through expanded fire camera coverage, modern AI-enabled detection systems, and long-term funding that protects communities, forests, and regional industries,” she said. The technology uses AI, ultra-HD 360-degree cameras and satellite data to detect smoke and ignition points continuously across large landscapes, with all alerts verified by human analysts before dispatch. Despite the proven results, Victorian coverage remains uneven, operational funding is inconsistent, and integration with the CFA, FFMVic and the SES is limited. TTV also wants a statewide expansion, sustainable operational funding, and a fully integrated fire intelligence system connecting camera feeds with emergency services across all agencies. On forest policy, TTV is calling for Victoria’s state policy settings to align with the Australian Government’s Timber Fibre Strategy, providing the coordinated framework that plantation investors, processors and regional employers need to plan and grow with confidence. TTV will be seeking a formal response from all six parties on each priority ahead of the state election. “We ask for a commitment to develop a whole-of-government forestry and fibre growth strategy to include streamlining planning and environmental approvals for plantation and processing projects, supporting investment in engineered timber and advanced wood manufacturing, and embedding forestry and fibre in Victoria’s climate and housing strategies,” Cr Stephens said.  

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The effects of the Iran war on the oil market have brought renewed attention to the EU’s plans for domestic production of fossil-free aviation fuels. But EU rules for synthetic aviation fuels risk steering development towards production pathways that are both more expensive and more energy-intensive than necessary – making it harder to meet climate targets. This is shown in a recent study from Chalmers University of Technology, Sweden, that has analysed different methods for producing synthetic methanol. Last year, rules were introduced requiring a minimum blend of 2% sustainable aviation fuel at EU airports. This blending requirement will increase gradually, reaching at least 70% by 2050. By then, half of the sustainable aviation fuel must consist of a category known as RFNBO: Renewable Fuel of Non-Biological Origin. These are synthetic fuels, also known as electrofuels, produced from renewable hydrogen and captured carbon dioxide. Researchers at Chalmers University of Technology now show that the RFNBO rules favour a “detour” in the production of synthetic fuels, which risks increasing both costs and energy use. “Regulations influence not only industry’s investments in technology, but also which research and development priorities are pursued. Instead of driving innovation towards the most efficient solutions, we risk locking ourselves into less resource-efficient production methods,” said Henrik Thunman, Professor of Energy Technology at Chalmers and co-author of the scientific article. Thousands of new plants will be needed globally to meet the growing demand for sustainable aviation fuels in the coming decades. This will require very large investments in facilities with long operating lifetimes. Big differences between alternative pathways for the same product using the same raw material The research team at Chalmers has studied the production of synthetic methanol, which is an example of a fuel molecule that can be converted into sustainable aviation fuel. It provides a representative case for analysing how different production pathways affect resource use in the production of such fuel molecules. These energy-rich molecules can be produced by combining carbon atoms and hydrogen in chemical processes. In the study, the researchers compared three different production pathways for methanol in which the carbon atoms come from biomass – so-called biogenic carbon. Two of the methods are based on biomass combustion, where carbon dioxide is captured from flue gases and then mixed with hydrogen produced separately using electricity. The third is based on gasification, where heated biomass is converted directly into synthesis gas, which contains both carbon and hydrogen. All three production pathways are technically feasible, and both the raw material and the final product can be the same. However, they differ clearly in terms of energy use, cost and electricity demand. “The gasification pathway proved to be the most resource-efficient option in our analysis, with up to 46%  lower production cost and 30% lower electricity demand than the two combustion-based alternatives. The difference shows how large the energy losses can be when biomass is first combusted into carbon dioxide, which is then rebuilt into fuel molecules using large amounts of electricity and hydrogen,” said Johanna Beiron, researcher in Physical Resource Theory at Chalmers and first author of the article. Despite this, combustion is favoured much more strongly than gasification by the EU regulatory framework. The RFNBO category, which is expected to expand from close to zero today to 35 percent of all aviation fuel in the EU by 2050, includes all fuel from the combustion-based alternatives, but excludes around half of the fuel produced via gasification. The reason is that RFNBO fuels may not be produced using energy and carbon atoms that come directly from biomass, as they largely do in gasification-based production. In contrast, it is permitted to use carbon atoms from biomass in combustion-based routes, provided this is done by capturing the carbon dioxide formed when biomass is used for other energy purposes. One example is the combustion of residual material from the forest industry in combined heat and power plants. But such residual material can be used more resource-efficiently through gasification. “One of the combustion-based alternatives we analysed was the process in combined heat and power plants,” said Ms Beiron. “It has lower cost and energy efficiency than gasification, even when we include the additional electricity needed to replace, for example, the district heating that the combustion process can contribute.” One purpose of the RFNBO classification is to stimulate increased generation of renewable electricity for the production of green hydrogen, and to reduce dependence on biomass, which is a limited resource. But the carbon atoms for synthetic aviation fuel must come from somewhere. Biomass is expected to be the least costly fossil-free carbon source for RFNBO production, and the researchers expect that today’s regulatory framework will result in a very high demand for carbon dioxide from biomass combustion. Instead of reducing the need for biomass, the EU regulations risk driving a less energy-efficient use of the limited biomass resource. “The regulatory framework does not account sufficiently for how efficiently different systems use energy and resources,” said Mr Thunman. “The study therefore highlights a structural issue in EU energy and industrial policy: regulation risks working against its own objectives when definitions of sustainable fuels are not aligned with fundamental energy principles or with the Union’s broader ambitions for resource efficiency.” The researchers hope that their results will contribute to greater knowledge about the technologies and systems that are available. “It is surprising that EU rules do not provide clearer incentives for the most efficient alternatives,” said Ms Beiron. “The current regulatory framework risks causing lock-in to combustion-based energy systems, even though technically mature processes already exist that would provide both lower energy use and lower cost – such as gasification and electrification of district heating.” “Our study shows that some parts of the regulatory framework probably need to be adjusted if the EU is to achieve its long-term goals,” said Mr Thunman. “Better coordination is needed between climate targets, resource efficiency and industrial feasibility in order to address the uncertainty that currently exists. This uncertainty makes it difficult to make rational investment decisions […]

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PEFC’s 2025 Annual Review has been released, and PEFC says that the past year was one of progress, partnerships and impact, as it continued to advance sustainable forest management worldwide. Source: Timberbiz Across the PEFC Alliance, it strengthened its global network with new endorsed systems in Türkiye and Lithuania and a new standard in Croatia and welcomed CMPC Celulosa S.A. as an international stakeholder member. Last year also saw important steps forward in its strategic priorities. PEFC launched its Indigenous Peoples Engagement Program, opened a regional office in Gabon, and continued shaping the future of the PEFC system through new approaches focused on performance and impact. PEFC also advanced innovation across key areas, from expanding Trees outside Forests certification and progressing the PEFC Project Sourcing standard, to strengthening the role of certification in credible forest carbon projects and supply chain transparency. Throughout the year, PEFC engaged in global dialogues on forests, biodiversity and climate, and continued sharing the stories of forest owners and communities, highlighting the real world impact of certification on the ground. You can download a copy of the Annual Review here.

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The research originated in a project aimed at developing biofuels for ships but has since evolved into an environmentally friendly method for wood preservation. The path to new inventions is rarely straight or predictable, and this has certainly been the case for University of Copenhagen researchers Emil Thybring and Sune Tjalfe Thomsen. For several years, they have been working on a new, sustainable way to impregnate wood without harming the environment. Source: Timberbiz Today, the wood industry treats timber with heavy metals such as copper to extend its lifespan when used as a construction material. In the pressure treatment process, water with dissolved preservation chemicals is forced into the wood. The problem is that a large proportion of these substances is later leached out when the wood is exposed to rain, ultimately ending up in soil, marine environments and drinking water. “The toxic substances we introduce into the wood using water to make it last longer also leave the wood with water and end up in nature. It is a serious problem, and one we aim to solve with our technology,” said Emil Thybring, associate professor at the Department of Geosciences and Natural Resource Management. The researchers’ method is based on lignin, a natural binding agent in wood that stiffens the material and holds its cells together. Lignin is available in vast quantities as a residual product from the paper industry, where it is separated out and typically burned because it gives paper a brownish colour rather than the desired white. According to the researchers, just 15% of the EU’s lignin production could replace the environmentally harmful substances used across the entire EU production of pressure-treated timber. “It makes perfect sense to take a global industrial by-product and use it as an environmentally friendly alternative to the most widely used and environmentally damaging  wood protection methods we rely on today,” said Sune Tjalfe Thomsen, associate professor at the Department of Geosciences and Natural Resource Management. By dissolving lignin in alcohol, the researchers have succeeded in creating an extremely concentrated solution with such a high lignin content that it can impregnate wood very efficiently – a process they have dubbed “hyperlignification”. “Others have previously considered using lignin as a wood preservative and experimented with relatively dilute solutions. We work with much higher concentrations, which truly saturate the wood and protect it against fungal decay and rot,” said Emil Thybring. The method works by dissolving lignin – a natural binding agent in wood – in an alcohol-based liquid, allowing it to penetrate the wood’s microscopic structure. The researchers use a process similar to conventional pressure impregnation, in which the liquid is forced into the wood under pressure. The key difference is the much higher lignin concentration, making it possible to fully ‘saturate’ the wood with the natural material. Once inside the wood, the lignin alters the material’s internal composition, making it far less attractive to wood-degrading fungi. At the same time, the wood’s ability to absorb moisture is reduced, which is one of the primary drivers of bio-logical degradation. The result is a wood material that is far more resistant to the mechanisms that normally lead to rot and decay. “In laboratory trials, where we expose the wood to some of the most aggressive wood-degrading fungi under optimal growth conditions, we see a striking difference between untreated and hyperlignified wood. “For example, tests on pine and beech show that when fungi have decomposed around 50% of untreated wood, they have only broken down about 1% of the hyperlignified wood,” said Sune Tjalfe Thomsen. These results indicate that the treatment has the potential to significantly reduce the rate of degradation. The findings were obtained under controlled laboratory conditions. An important next step is therefore to assess the effect at larger scales and under realistic outdoor conditions. Ensuring that wood withstands outdoor exposure is not a new interest for Emil Thybring and Sune Tjalfe Thomsen, who could best be described as researchers with a long-standing interest in wood durability. For years, Emil Thybring conducted his own experiments in his backyard, testing various natural wood protection methods and monitoring them over time. Today, that interest has evolved into a full-scale research project, which has recently received more than DKK 15 million in funding from Innovation Fund Denmark’s Grand Solutions program. Last year, the researchers also won a major European innovation competition, the “Evergreen Prize for Innovation”, receiving EUR 300,000 to further develop their non-toxic wood protection technology. The Grand Solutions project has been named “HYPERLIGNO” and was officially launched in April. In collaboration with Frøslev – Denmark’s largest timber supplier to the construction industry as well as architects and other partners, the project aims to bring the research from the laboratory into production, trans-forming new knowledge into new wood products. “We need to dive deep into the lignin molecules because we can see that certain types of lignin penetrate deeper into the wood and provide better protection. This allows us to identify the optimal lignin source from the paper industry,” explains Sune Tjalfe Thomsen. The Hyperligno team aims to develop a product that could replace today’s toxic wood impregnation methods in Denmark and across Europe. At the same time, the EU is moving towards stricter regulation of biocides in wood, with a phase-out expected by 2030.

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South East Asia and the Pacific have some the last remaining untouched forests in the world. These primary forests are irreplaceable ecosystems, supporting rich biodiversity, storing vast carbon and sustaining the livelihoods of Indigenous Peoples. Source: Timberbiz However, across the region, these forests continue to decline despite their importance, even as overall forest area in Asia shows signs of increase. The Food and Agriculture Organization of the United Nations (FAO) is strengthening countries’ capacity to monitor and report on primary forests through a regional workshop taking place this week in Thailand, bringing together experts from across Southeast Asia and the Pacific to improve the quality, consistency, and comparability of data on primary forest extent and trends including the use of national forest inventories, geospatial data, and satellite imagery for their mapping. “To safeguard what remains of these vital ecosystems, countries need reliable and consistent data to guide action and track change over time,” said Alue Dohong, FAO Regional Representative for Asia and the Pacific. “This workshop is an important step toward strengthening national capacities and ensuring better evidence for decision-making on primary forests.” FAO is working with countries to improve the consistency and quality of data reported to FAO’s Global Forest Resources Assessment (FRA), while also enhancing their ability to monitor primary forests over time. Organized under FAO’s work on primary forests and the Global Environment Facility-funded Strengthening Conservation of Tropical Primary Forests through Partnership Enhancement and Coordination of Support (SCOPE) project, the workshop brings together technical experts from Bhutan, Indonesia, Lao People’s Democratic Republic, Malaysia, Papua New Guinea, Thailand and Viet Nam. Participants are reviewing and testing draft guidance and geospatial tools designed to support more accurate mapping and reporting of primary forests. These include hands-on training in tools such as Collect Earth Online and the Primary Forest Finder, which help countries assess forest extent and changes over time. Building a stronger evidence base Through this joint initiative with member countries and partners, FAO is developing biome-specific guidance, improving the shared understanding of what constitutes a primary forest, and strengthening national data systems. The workshop builds on earlier efforts, including a virtual session held in 2021, and contributes to the Southeast Asia and the Pacific Forests Integrated Program. It also supports global efforts to halt biodiversity loss and address climate change by improving the evidence base for forest conservation. Ultimately, more accurate and consistent data on primary forests will enable better-informed decisions at national, regional and global levels, helping to protect some of the planet’s most valuable ecosystems.

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Say ‘pines’ in Canberra, or in most of southern Australia, and people will probably think of plantations of Radiata (also known as Monterey) Pine which cover huge swathes of areas around Tumut and Bathurst, the south-east of South Australia and across Victoria and Tasmania. (Though ironically this pine is highly endangered in its very small natural range in coastal California and Mexico.) Source: Region However, there are some 50 species of native conifers (which means ‘bearing cones’ and not flowers) in Australia, whose ancestors grew across the world from about 300 million years ago, among forests of giant ferns and other plant groups which have long gone from the earth. This was well before the rise of the dinosaurs. In time they dominated the world for 100 million years and I’ll pause while you contemplate that, and then the dinosaurs did munch on them. Eventually though the flowering plants appeared and became dominant, but in many parts of the world, especially high on mountains and near the poles where it’s too cold for birds and insects to be reliable pollinators, the conifers still rule. They are not so dominant in Australia, though inland there are still extensive woodlands of cypress pines, which were heavily logged for their easily worked timber which is resistant to rot and termites. Many of the old shearing sheds on the plains in western NSW are made of cypress. However, today I want to introduce the only two native pines that grow naturally in the ACT, though neither is widespread. In drier rocky woodland areas, especially in Molonglo Gorge and along parts of the Murrumbidgee Corridor, dark green, Black Cypress Pines (Callitris endlicheri) appear in stands of often slender tapering trees. Like most cypress pines they bear both male and female cones on the same plant. The male cones are small, on the ends of the branches, and produce vast quantities of minute pollen grains which drift on the wind. Most of these are lost, but enough land by chance on an open female cone to ensure the success of the species. The rounded female cones are much larger and woody and stay on the tree for years holding the seeds. After a fire, which usually kills the tree, they will open to drop the seeds. However, in the absence of fire the cones will eventually open anyway. The cones are very hard, but any of the local cockatoos can crack them to extract the seeds. The other local native pine is very different in appearance and habitat. Mountain Plum Pine (Podocarpus lawrencei) belongs to a different family, the podocarps, whose ancestors arose in Gondwana and which are still only found in the southern lands. Most podocarps are rainforest trees, but Mountain Plum Pine grows as a sprawling ground cover across rocks high in mountains, even above the snow line. These shrubs provide crucial shelter for small animals by providing a still warm air layer between the rocks and the dense layer of small leaves even in winter when snow lies on top of the foliage. Unlike the cypress pines, Mountain Plum Pines have separate male and female plants. The male cones are small and purple, while the female cones are quite unlike those of the cypress pine – indeed they look like a glossy red berry, but this is misleading as they don’t contain a seed. The seed is carried in the open at the end of the stem, and it is the stem which is red and swollen to resemble a fruit and even contains sugars, to attract animals which then distribute the seeds. An excellent place to look for them is along the high parts of the Mount Franklin Road in Namadgi National Park (and early May is not too late to go up there to have a look). Just walk along the road beyond the locked gate on the slopes of Mount Ginini and watch the roadside on your right; there are very healthy Mountain Plum Pines growing on the roadside. If you rub the leaves between your fingers, you’ll immediately recognise this low shrub as a pine, even if your eyes say otherwise! I love our wildflowers as much as anyone, but there are other even older local plants which lack flowers but still deserve our attention and admiration.

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The Inala Infill Apartments, designed by Baber Studio, have been awarded House of the Year at the 2026 Greater Brisbane Regional Architecture Awards – the highest honour across all residential project categories. Source: Timberbiz The award recognises the project’s leadership in cross‑laminated timber (CLT) construction, low‑carbon delivery, and high‑performance social housing, outperforming expensive new house projects and large multi‑residential “green tower” developments recently completed in Brisbane. Led by Kim Baber, Principal Architect of Baber Studio and Project Leader / Chief Investigator within the ARC Advance Timber Hub, the project demonstrates how mass timber systems and modern methods of construction (MMC) can deliver cost‑effective, scalable and climate‑positive housing outcomes -without compromising architectural quality or resident wellbeing. Key project members include Free-Range Landscape Architects, Hyne Timber and XLam, and Kane Constructions. At the core of the project is the use of structural mass timber, with CLT forming the primary floor and roof system. Concrete and steel were deliberately limited to areas where they were functionally unavoidable, such as the ground slab, lift core and select structural elements. This material substitution reduced total carbon emissions for the project by 173.4 tonnes of CO₂, equivalent to taking 37 cars off the road for one year. The entire building required only two hectares of forest, which could be regrown in Australian plantation forests in approximately 18 minutes. The building incorporates approximately 247 m³ of engineered timber, including CLT, glue‑laminated timber (GLT) and laminated veneer lumber (LVL). Importantly, the CLT manufacturing process enables the transformation of low‑structural and/or appearance‑grade timber into high‑performance structural panels, maximising resource efficiency while supporting domestic timber supply chains. Inala Infill Apartments provides a clear example of how MMC and prefabricated timber systems can de‑risk delivery and improve productivity in mid‑rise residential projects. XLam CLT panels, manufactured to precise dimensions using computer numerical control (CNC), minimised waste and enabled rapid on‑site assembly. A key outcome was construction speed: installation of the CLT floor panels took just two days, compared with the six days originally programmed, allowing early removal of cranes and reducing overall construction costs and site disruption. These efficiencies highlight the commercial advantages of mass timber for projects operating under tight budgets and delivery timelines. Beyond embodied carbon and construction performance, the project demonstrates the health and wellbeing benefits of exposed mass timber. CLT ceilings are left visible throughout the apartments, reducing reliance on plasterboard and paint finishes and significantly lowering volatile organic compound (VOC) emissions at occupation. This contributes to improved indoor air quality and long‑term occupant comfort. The architectural design integrates biophilic principles through strong visual and physical connections between timber structure and landscape. Courtyards, walkways and close connections to gardens are coordinated with exposed timber surfaces, reinforcing nature‑based relationships and supporting resident wellbeing. The apartments are configured to maximise passive environmental performance, reducing operational energy demand. Each dwelling includes dual balconies, enabling effective cross‑ventilation and passive cooling. The layout supports “diurnal migration”, al-lowing residents to occupy cooler areas of the apartment throughout the day and reducing reliance on mechanical systems. The building is 100% electric, exceeds minimum insulation requirements, and was assessed using NatHERS, confirming performance beyond minimum energy‑efficiency standards. This demonstrates that mass timber and passive design strategies can be effectively combined in real‑world housing delivery. Recognised as an exemplar by the Queensland Department of Housing and Public Works and the NSW Government Architect, the Inala Infill Apartments project has been included in government design guidance for the wider design community and general public. Showcased in the MMC Case Study – Inala Infill Apartments Queensland. It features in the Queensland Social Housing Design Guidelines. The project has also been incorporated into continuing professional education pro-grams, including the NSW Government Architect’s Talking Homes presentations. Inala Infill Apartments provides a replicable model for low‑carbon, mid‑rise housing. The project demonstrates that CLT and mass timber are no longer niche solutions, but commercially viable systems capable of delivering speed, certainty, sustainability and social value at scale. The House of the Year award reinforces a growing industry message: when combined with thoughtful design and modern methods of construction, mass timber can redefine how housing is delivered in Australia – for governments, developers and communities alike.  

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The New Zealand Institute of Forestry (NZIF) has welcomed the release of the Climate Change Commission’s 2026 National Climate Change Risk Assessment, particularly the recognition of forestry as one of New Zealand’s most significant climate related risks. Source: Timberbiz NZIF President James Treadwell said the report correctly recognises forests are already facing increasing pressure from climate change, including more severe storms, wildfire risk, drought, changing rainfall patterns, and increasing pest and disease threats. “Forests are long term assets. Decisions made today will influence how resilient our landscapes and communities are for decades to come.” said Mr Treadwell. “For commercial forestry this includes species choice, establishment, management and harvest planning but the long-term decision framework applies even more to the management of the conservation estate under changing conditions and the preservation of our native taonga.” “The report rightly highlights the need for stronger adaptation planning across the forestry sector.” NZIF represents professional foresters working across all forest types in New Zealand, including indigenous forests, production forests, farm forestry, permanent forests, protection forests and urban forestry. Mr Treadwell said forests play a critical role in New Zealand’s future, not only through carbon storage, but also through erosion control, biodiversity protection, water management, renewable materials, regional employment and landscape resilience. “It is important the national discussion does not frame forestry solely as a risk. Well planned and professionally managed forests are also a major part of New Zealand’s response to climate change.” NZIF supports the Commission’s call for improved long-term planning, better research and stronger coordination between central government, local government, iwi, re-searchers and the forestry sector. The Institute believes the next National Adaptation Plan should include development of a national forestry adaptation programme focused on: improving forest resilience to climate change, strengthening wildfire and biosecurity preparedness, supporting research into species suitability and genetics, improving land use planning for erosion prone land, integrating climate resilience into ETS and carbon forestry settings, recognising the role of professional forestry expertise in adaptation planning.   Mr Treadwell said adaptation policy must reflect the diversity of New Zealand forestry. “A one size fits all approach will not work. Different forest types, regions and ownership structures face different risks and opportunities.” “The forestry sector is ready to work constructively with government and communities to help build more resilient landscapes and a more climate prepared New Zealand.”  

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New South Wales Minister for the Environment, Penny Sharpe, was in Coffs Harbour to advance plans for the Great Koala National Park. Source: Timberbiz The NSW State Government says that the creation of the park is a once-in-a-generation opportunity to not only save vital habitat from extinction but build a world-class tourist destination that protects the environment while boosting tourism and the local economy. The final creation of the park is dependent on the successful registration of a carbon project under the proposed Improved Native Forest Management method. This is progressing following public consultation in January. The method is expected to be considered by the Commonwealth Government’s Independent Emissions Reduction Assurance Committee. The future park is rich with opportunities for recreation, and the government want these to be shaped by community voices at every step. Dozens of consultation sessions, from local market stalls to meetings with recreational groups, have drawn strong participation. More than 4,000 survey responses have explained how people want to protect the forests and develop recreation activities that will make the Great Koala National Park a must-see destination. “The Great Koala National Park is a landmark investment in the Mid North Coast, securing our unique environment while driving new local jobs and economic opportunities for our communities,” Minister for the North Coast, Janelle Saffin said. “By putting local voices at the heart of this process, we are ensuring the park’s creation delivers for everyone who lives and works here.” The Minister will meet with the Aboriginal Advisory Panel in Coffs Harbour. For the first time, the park will appoint NSW National Parks and Wildlife Service (NPWS) Aboriginal cultural heritage rangers, embedding cultural knowledge and care at the heart of park management. Following extensive collaboration with Elders and Traditional Owners on the Aboriginal Advisory Panel, positions will be created for Aboriginal Rangers. The area is a significant cultural landscape for the Gumbaynggirr and Dunghutti peoples, including places of creation, ceremony and spirituality, traditional camps, resource gathering areas and pathways. Extensive preparation is underway to ensure the park is ready from day one, including: boosting firefighting capacity with the NSW Rural Fire Service and Forestry Corporation NSW through more fire fighters, new equipment like fire trucks and early detection technologies refining park boundaries for the best conservation possibilities and working with local tourism, council and other partners to unlock new visitor and rec-reation opportunities preparing legislation to reserve the Great Koala National Park in late 2026.   “The Great Koala National Park is a once-in-a-generation opportunity to protect one of Australia’s most important koala populations while recognising the deep cultural connection Traditional Owners have to this landscape,” Minister for the Environment, Penny Sharpe, said. “The Minns Labor Government has been working closely with the community to ensure planning delivers strong environmental protection, while driving nature based and recreational tourism on the Mid North Coast.”

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The National Farmers’ Federation (NFF) has welcomed key measures in the Federal Budget that will ease pressure on farmers and strengthen the nation’s food and fibre supply chains, with hard fought wins for farmers in the tax reforms, including primary production income being exempt from a minimum tax on discretionary trusts. Source: Timberbiz However, the National Farmers’ Federation (NFF) raised concerns about cuts to regional infrastructure, connectivity and the Department of Agriculture, Fisheries and Forestry. NFF President Hamish McIntyre said the Budget landed at a difficult time for Australian agriculture, with farmers and fishers continuing to shoulder the impacts of global instability and supply chain disruption from conflict in the Middle East. “Farmers have been doing it tough, and so has the broader economy,” Mr McIntyre said. “The conflict in the Middle East has driven fuel and fertiliser costs through the roof and placed pressure on the production of the food and fibre Australians rely on every day. “When pressure builds on farm businesses, it doesn’t stop at the farm gate. It eventually flows through to all Australians at the checkout. “In that context, there are several measures in this Budget that are welcome and reflect the Government listening to the concerns the NFF has consistently raised on behalf of farmers.” The NFF welcomed changes ensuring primary production income will be exempt from the new 30% trust tax and confirmation there will be no changes to small business capital gains tax concessions. “There are around 40,000 trusts used in agriculture so these are significant wins for family farm businesses and reflect the case we have consistently put to the Treasurer about how these changes would impacted succession. “Family farms are generational businesses built over decades and often represent a family’s life savings and retirement plan. We are pleased the Government has listened.” The NFF welcomed the Government’s $10 billion fuel security package, designed to improve domestic fuel and fertiliser resilience with an emphasis on reducing the risk of supply shocks for essential users, including regional and agricultural industries. The permanent extension of the instant asset write-off was also welcomed, providing certainty for farm businesses looking to invest in equipment and technology. “We advocated hard for this to become a permanent feature of our tax system. It’s a simple and effective measure that helps farmers reduce costs and increase their productivity.” The NFF also acknowledged the new loss carry-back provisions, an $8.7m investment for the APVMA, along with the previously announced decisions to de-fer export cost recovery increases, and a $387 million boost to CSIRO and the Australian Centre for Disease Preparedness. “These are practical investments we’ve advocated for because they strengthen resilience and innovation and help keep downward pressure on the cost of producing Australian food and fibre.” The NFF also welcomed additional resourcing for implementing EPBC reforms with a focus on establishing new entities (National Environmental Protection Agency and Environmental Information Australia) and improving assessment timeframes. However, the NFF still requires clarity on how this funding will support the difficult transition agriculture is experiencing under changes to continuous use provisions for agriculture. “Farmers need clarity and consistency, particularly around changes to continuing use provisions,” Mr McIntyre said. “We’ll continue working closely with the Government to ensure these reforms deliver environmental outcomes without creating uncertainty or unnecessary compliance burdens for producers.” However, the NFF has raised concerns about sweeping cuts across key areas impacting agriculture. This includes the Department of Agriculture, pests and weeds, Inland Rail Project and regional connectivity including the Regional Tech Hub. “There could not be a worse time to pull back investment in supply chains and regional connectivity,” Mr McIntyre said. “The Inland Rail was designed to strengthen supply chains, ease pressure on our highways and reduce the cost of moving produce from farm gate to consumers. “The Regional Tech Hub helped more than 75 regional people each day in 2025 alone. “Without continued support for this service, regional Australians may lose a trusted service that has helped thousands navigate major technology changes and stay connected. “This Budget contains some hard-won wins for agriculture, and we welcome them. We’ve had the opportunity to be at the centre of some of the most important discussions of this generation, around fuel and fertiliser supply and capability. “But if Australia is serious about building a stronger, more productive economy, this must be the starting point, not the finish line.”

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The Federal Budget will make Australia’s housing shortage worse by reducing the supply of new homes at a time when the country is already struggling to house a growing population, according to the Housing Industry Association. Source: Timberbiz The HIA says that even the Government’s own Budget papers admit that changes to negative gearing and capital gains tax will reduce the supply of new housing by around 35,000 homes over the next decade. HIA Chief Economist Tim Reardon said the Budget was attempting to solve a housing shortage by discouraging the investment needed to build more homes. “Australia’s housing challenge is simple. Consider it as if we are trying to fit 11 million households into around 10 million homes,” said Mr Reardon. “The solution to a housing shortage is to build more homes. This Budget does the opposite.” From 1 July 2027, negative gearing for residential property will be limited to new builds, while the 50% capital gains tax discount will be replaced with cost base indexation and a 30% minimum tax rate on capital gains. Treasury estimates the reforms will support around 75,000 additional owner occupiers over the next decade, but at the cost of reducing the supply of new homes. “The Government is stopping 35,000 private homes from being built in order to raise enough revenue to build around 4,000 public homes,” said Mr Reardon. “That is a terrible trade-off in the middle of a housing crisis.” Mr Reardon said the reforms misunderstood how housing investment supports new home building. “Investors are critical to funding new housing supply and commenced around half of all new home builds in the past,” he said. “If investors leave the housing market, fewer projects proceed and fewer homes get built. “The Government assumes investors will simply redirect their money into new homes, but housing investment doesn’t work like that. “If the overall attractiveness of residential investment falls, fewer investors participate overall.” HIA welcomed the Budget’s additional $2 billion investment in housing-enabling infra-structure, including water, sewerage and roads, intended to unlock up to 65,000 homes. “These infrastructure investments are important because the industry desperately needs more shovel-ready land,” said Mr Reardon. “But infrastructure and planning reform take years to deliver new homes. The adverse tax changes hit the market confidence immediately.” Mr Reardon said the tax changes risk worsening rental affordability over time by reducing the supply of future rental housing. “At a time when vacancy rates remain critically low, reducing the number of investor-funded homes being built will inevitably place upward pressure on rents,” he said. “The Government deserves credit for recognising that infrastructure, planning and approvals are barriers to supply. “But you cannot tax your way out of a housing shortage. “The only lasting solution to housing affordability is more homes.”

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AFPA has welcomed the Federal Government’s proposed change to negative gearing legislation for new housing developments in Australia, outlined in tonight’s 2026-27 Budget. Source: Timberbiz Under the plan, negative gearing will only be available for newly built homes and grandfathered for current investors holding negatively geared assets, which was previously recommended by AFPA. “In 2024, we called for this important change to tax concessions on negative gearing to expand the supply of housing as part of a Senate inquiry into Australia’s financial regulatory framework and home ownership,” AFPA acting Chief Executive Officer Richard Hyett said. “As we recommended in a submission, this change will help to increase much-needed investment in new housing development in Australia, which will address the shortage of new dwellings and our national housing crisis. “This reform will boost confidence in the construction sector, drive new investment, and improve housing affordability. “It will help to increase the use of sustainable timber in new homes and buildings.  There are many benefits of using Australian-grown timber for housing, especially as it’s a natural, trusted, durable and renewable resource that stores carbon and can be easily re-paired. “The Government could also leverage and achieve its climate goals if this were accompanied by policies that preference Australian timber in new housing.” AFPA also supports the Budget measure to introduce free public access to Australian Standards, which will remove housing and planning red tape, and increase support for modern methods of construction. “Having free access to these standards will reduce costs to builders, while helping to improve compliance and safety for the building industry,” Mr Hyett said. The allocation of $500 million to implement Environment Protection and Biodiversity Conservation (EPBC) Act reforms is also welcomed, as it will streamline approvals and increase investment in major projects. This includes $28 million over two years specifically for transitioning forestry to the new arrangements. “Given the tight timeframes around the new national environmental laws, this funding is critical to provide resourcing to help progress bilateral agreements with states and territories, and reduce red-tape duplication,” Mr Hyett said. “As part of this investment, state and territory governments will be encouraged to prioritise progressing and signing new assessment and bilateral agreements with the Commonwealth, which is critical for Australia’s sustainable forestry industry. “We look forward to working constructively with the Government to ensure certainty for Australia’s sixth largest manufacturing sector.”  

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