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The Housing Industry Association has welcomed the Federal Government’s $300 million to support Australia’s future wood supply to meet increasing housing needs across the country. Source: Timberbiz “Australia’s forestry industry is a key part of Australia’s national economy and is critical to supporting our local manufacturing sector and delivering more housing in both our cities and across regional Australia,” said HIA Managing Director Jocelyn Martin. “Timber is a valuable resource, widely used in Australia’s construction sector, with over 70% of all house frames constructed with timber framing. “Demand for timber in housing construction is expected to grow by about 50% by 2050 as the population increases, therefore, it is critical to set the plans in place now to meet this future growing demand. “The housing industry needs certainty to plan out for the future, and a key part of this is delivering a secure ongoing supply of locally grown timber matched to increasing demand. “We know that with a growing population it will mean an increased demand for use of timber and wood-fibre, and it is essential for Australia to have a steady supply of sustainably sourced timber and wood-fibre resources.” Ms Martin said the announcement was timely given it was made on National Forestry Day and folloewd the recently released Timber Fibre Strategy, which sets out a pathway for the future growth of Australia’s forestry industry. “HIA remains committed to working with the government in delivery of the Timber Fibre Strategy which will play an important role and key input into tackling our national housing challenges,” she said.

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The Victorian State Government is fast tracking the establishment of timber plantations in Victoria, helping to boost local timber supply for construction and manufacturing and create more jobs. Source: Timberbiz Minister for Agriculture Ros Spence this week announced $10 million as part of the Victorian Plantation Support Program to establish new long-rotation timber plantations. “Demand for timber is expected to quadruple globally over the next 50 years, and we’re making sure Victoria has a secure supply,” Minister Spence said. “Victoria is already home to the nation’s largest plantation estate, and this funding will continue to strengthen our thriving and resilient timber industry.” This additional funding will be for projects approved under select rounds of the Commonwealth’s Support Plantation Establishment Program. Victorian growers looking to develop new plantations can receive up to $1000 per hectare under the program to assist with plantation establishment activities. Combined with the Commonwealth program, new plantations of 20 hectares or more in Victoria can receive up to $3000 per hectare, with a cap of up to $200,000 per project. As the winter planting season draws to a close, approximately 2.4 million tree seedlings have been planted this year through the Gippsland Plantations Investment Program by Hancock Victorian Plantations. This year’s planting has brought the total number of trees planted to more than 3.5 million. This program is the single largest investment in plantation establishments in the state’s history and will see up to 16 million trees planted over a 10-year period. The timber will create wood supply that will build Victoria’s future homes, create regional jobs, and produce paper and packaging products to replace single use plastics. “The planting of 2.4 million trees this year through the Gippsland Plantations Investment Program is a clear demonstration of what’s possible when government and industry work together,” Victorian Forest Products Association CEO Andrew White said. “This is a terrific new initiative that will help overcome the upfront barriers to new plantation establishment. This investment is critical to securing the timber required to build more homes for Victorians.” The government’s $190 million investment to expand Victoria’s plantation estate is delivering its goal of creating new plantations across the state.

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Fifteen new projects worth a combined $19 million and spread across NSW, Western Australia, Tasmania, Victoria and the Northern Territory have been announced in Round 3 of the Support Plantation Establishment Program. Source: Timberbiz “From expanding Australia’s future wood supply to meet increasing demand, to helping grow a skilled and sustainable workforce, the Albanese Labor Government is investing $300 million into the long-term future of Australia’s forestry sector,” Minister for Agriculture, Fisheries and Forestry Julie Collins said. The funding will bring the total number of new hectares planted under the program to around 25,000 hectares. Total funding under the $73 million SPEP arrives in at over $46 million to date. “From expanding Australia’s future wood supply to meet increasing demand, to helping grow a skilled and sustainable workforce, the Albanese Labor Government is investing $300 million into the long-term future of Australia’s forestry sector,” Minister Collins said. Deputy Chief Executive Officer of AFPA Richard Hyett said that over the past decade, the AFPA and the broader industry had advocated for government initiatives to assist in growing more production trees for Australia’s future and to meet future demand. He said that at the 2022 Federal Election both sides of federal politics committed to what is now the SPEP to encourage more production plantings. “We expect global demand for timber and wood-fibre to quadruple by 2050, and we must make sure that Australia has the sustainable resource growing in the ground to service our own needs as governments seek to decarbonise the economy, but also potentially to help the world with its growing demand,” he said. “A big thank you to Minister for Agriculture, Fisheries and Forestry Julie Collins who has championed our industry’s causes and understands the importance of sustainable timber and wood-fibre resources for the climate, environment, to support our full supply chain and for essential consumer markets.” Mr Hyett said that while the SPEP had some way to go before all funds were exhausted, the AFPA would continue working with the Federal Government to secure further, ongoing funding to support plantation expansion over the next few years. “We know that increased use of timber and wood-fibre in the economy is essential for Australia and the world to meet emissions reduction targets and a steady supply of sustainably sourced timber and wood-fibre resource is essential to make that happen,” he said.

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National Forestry Day was usually a time to celebrate the achievements of Australia’s forest and timber industries, with this year marking 150 years since George Goyder mapped out South Australia’s first plantation. Source: Timberbiz The Minister for Agriculture, Fisheries and Forestry, Julie Collins said that National Forestry Day was an excellent time to highlight the importance of our forestry sector, from the jobs it supports in our regions to the significant impact it has on our national economy. “Today is also an opportunity to look to the future of this great sector, which plays an important role in supporting our Net Zero ambitions, and providing sustainable, high-quality, carbon-sequestering products that Australians need,” she said. But despite this milestone, the industry faces an uncertain economic future, according to South Australian Forest Products Association Chief Executive Officer, Nathan Paine. “South Australia is proud to be the birthplace of Australia’s plantation forestry industry,” he said. “For 150 years, generations of South Australians have grown and processed the timber that builds our homes, supports our manufacturers and retailers, underpins our farms, and sustains our economy and way of life. “Yet today, our timber processors are under unprecedented pressure from both soft domestic demand and the growing threat of surging imports,” he said. The United States had now lifted tariffs on Canadian timber to 35.19%, escalating a broader global trade shift with Canada explicitly identifying Australia as a key new market for its diverted supply. “The scale of potential trade diversion is alarming, especially as Canada exported an estimated 28 million m³ of lumber to the US in 2024 – equivalent to almost 2 million homes,” Mr Paine said. “And, even if 5% of Canada’s displaced supply were redirected to Australia, it would mean an additional one million m³ flooding into our market – a volume large enough to destabilise local processors and trigger mill closures.” This was not just a trade issue; it was a sovereign capability issue, and to protect Australia’s timber future, SAFPA has released its Our Timber. Our Jobs. Our Future. policy paper, calling for urgent government action. Key recommendations include: Maximise South Australian grown and processed fibre content in all State Government property projects and advocate for the Federal Government to adopt the same approach. Establish a State-level Supporting Domestic Manufacturing Strike Force to safeguard local capability. Promote retailer-led procurement of South Australian and Australian processed wood products. Support country-of-origin labelling for imported fibre in government projects. Invest in sovereign fibre and manufacturing capability while securing future plantation expansion and fibre supply. Mr Paine said that South Australians knew too well the cost of stepping in when an industry was on the brink of collapse. He said Whyalla was a stark reminder. The Whyalla steelworks is facing severe problems, primarily due to financial mismanagement and operational issues under the ownership of GFG Alliance. These problems have led to the plant being placed into administration, halting steel production for months and threatening thousands of jobs. The South Australian government has stepped in, forcing the plant into administration and pledging support to find a new operator. “While our industry remains solid, we cannot afford to ‘wait and see’ with Mount Gambier, the heart of Australia’s softwood industry,” Mr Paine said. “National Forestry Day should be a moment of pride, and it is. “But it must also be a call to action. SAFPA is working with industry to protect our sovereign capability, secure regional jobs, and ensure that the next 150 years of Australian forestry are defined by resilience, innovation, and sustainability – not disinvestment and decline. “Industry acknowledges the Government’s ongoing engagement and looks forward to working together to protect – and grow – our timber industries into the future. SAFPA will be seeking urgent discussions with the Government to secure support for these recommendations,” he said.

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