Australian timber industry news

AKD has launched the next graduate intake for 2025-2026 at their sites at Caboolture, QLD, Tumut, NSW and Colac, Victoria. Source: Timberbiz This will mark the third year this program has taken place, since its inception in 2022. Graduates have come from disciplines such as Forestry, Mathematics, Business and Engineering. As a result of the program, AKD has successfully provided ongoing employment for most graduates who have taken their careers into areas they were exposed to as part of the program. The program allows for graduates to spend time on different projects, and in some instances, have different supervisors and locations to work at, which has helped provide them with the awareness of where their career can go across our whole operation and allowed for AKD to tailor the experiences to areas of interest for the individuals. To date, much of the cohort have come from the Engineering fields of Mechanical, Electrical and Mechatronics. This has proven successful to provide future talent into areas of continuous improvement, projects and maintenance across sites. “We have had two great cohorts come through this program to date, many of those being current employees who have completed their studies as well as interns, returning for a longer duration due to their experiences when they were studying, which makes me very proud of the program,” Talent Attraction & Development Manager, Gen Ryan said. “My hope is for this future cohort, that we attract a more diverse pool of people in terms of both demographics and disciplines. “There will always be a focus on STEM, but we have seen great things from individuals with passions in other areas such as business and management as well,” she said. AKD will be holding an online information session, showcasing their internship and graduate program, to be held on September 5. Details can be found on https://www.akd.com.au/people-careers/graduate-program/

The Seasonal Bushfire Outlook for Spring 2024 shows increased risk of fire for large areas in NT and Queensland, as well as far west and southwestern Victoria, and the southeast corner of SA. Source: Timberbiz Mean temperatures for the year to date have been above average to very much above average for most areas, with areas of western WA and northern SA experiencing highest on record maximum temperatures for the period. August saw widespread above average temperatures and was the warmest August on record. For spring, there continues to be an increased likelihood of unusually high maximum temperatures across most of Australia. There is an increased chance of above average rainfall for much of NSW, Queensland, eastern Tasmania and far southeast SA, while large parts of WA have an increased chance of below average rainfall. For this outlook period, increased risk of fire for southern and central Queensland is driven by dry grasslands caused by winter frosts and dry winds. In northern Australia, unseasonal rainfall in Queensland and NT has led to increased fuel loads. In both cases, fire authorities warn of increased fire danger as temperatures increase. Further south, large parts of southeast SA and WA and parts of Tasmania received rainfall in the lowest 10% on record for the first half of the year. However, August saw above average to well above average rainfall in both southwest WA and western Tasmania, easing dry conditions in the region. Fire authorities are advising communities of the potential for an early start to the fire season in parts of SA and Victoria, and extending to Tasmania if warm and dry conditions continue to dry out fuels towards summer. While other parts of Australia show normal risk of fire during this outlook period, communities are encouraged to be vigilant and stay alert through winter months. Destructive and deadly fires can still occur during normal bushfire seasons across Australia. AFAC CEO Rob Webb urged communities to prepare and adhere to advice of local fire authorities this spring. “Fire and emergency services are prepared for the fire season ahead and are here today to encourage communities to do the same,” Mr Webb said. “Now is the time to make a plan. Understand your local risk, know where you will get your information, and talk to your family about what you will do.” This Seasonal Outlook was developed by the Bureau of Meteorology, Queensland Fire Department, the NSW Rural Fire Service, ACT Emergency Services Agency, ACT Parks and Conservation Service, Country Fire Authority, Department of Energy, Environment and Climate Action Victoria, Tasmania Fire Service, SA Country Fire Service, Department of Fire and Emergency Services and Department of Biodiversity, Conservation and Attractions WA, Bushfires NT and AFAC.

Market confidence appears to be returning to the home building market, with an increase in residential building approvals in July, according to HIA Economist Maurice Tapang. Source: Timberbiz The Australian Bureau of Statistics this week released its monthly building approvals data for July 2024 for detached houses and multi-units covering all states and territories. Residential building approvals rose by 10.4 per cent in July, with a 0.3 per cent rise in approvals for detached houses and a 33.7 per cent rise in multi-unit approvals. Nationally, there were 9,350 detached homes approved for construction in July 2024 and 5,440 multi-unit approvals. “The small increase in detached home approvals is being driven by what appears to be sustained improvements in Western Australia, Queensland and South Australia, while New South Wales and Victoria remain more constrained,” Mr Tapang said. “The strong improvement in the number of multi-unit approvals comes off the weakest month for multi-units in 12 years.” House approvals over the three months to July 2024 were 2.3 per cent higher compared with the previous three-month period, to be 12.6 per cent higher compared to the same time in the previous year. Across the capital cities, house approvals in the three months to July rose by 19.8 per cent in Perth compared with the previous three-month period, with Adelaide recording an increase of 13.7 per cent and Brisbane an increase of 10.6 per cent. The two largest capital cities recorded more modest increases in house approvals, with Sydney up by 2.8 per cent compared to the previous three-month period and Melbourne up by 2.0 per cent. “The uplift in home building approvals in those markets outside of Sydney and Melbourne has been driven by strong economic conditions and the relatively lower cost of delivering a new home,” Mr Tapang said. “It has been almost ten months since the last increase in the cash rate. Stable interest rate settings have provided the certainty needed to see a rise in home building confidence. “Materials price growth and build times for homes have stabilised and returned to normal pre-pandemic levels, which provides certainty with the cost to build,” he said. “Unemployment remains very low, and there are now more people employed in the economy than there were prior to the pandemic. “There is strong demand for homes and a low level of supply, as evidenced by low rental vacancy rates particularly outside of Australia’s southeastern capitals. “Policymakers that ease the tax and regulatory burdens on new homes will also help in lowering the cost of delivering a completed home to market,” Mr Tapang said. Master Builders Australia CEO Denita Wawn said that July marked the first month of the new National Housing Accord, which seeks to deliver 1.2 million new homes by June 2029. “(The) figures show that we have started the Accord on the front foot,” she said. “However, it will still be a huge challenge for us to deliver the Accord’s target. “Over the past five years, just 940,000 new homes were approved across Australia. “More ominous is the fact that 166,140 new home building approvals were received over the year to July,” Ms Wawn said. “If we remain at this pace, we’re looking at creating about 831,000 new homes over the next five years. “We cannot take the foot off the peddle when it comes to boosting housing supply and improving the investment environment for new projects. “Workforce shortages, woeful industry productivity, a lack of critical infrastructure, high taxes and charges, slow approval process, and costly union Enterprise Bargaining Agreements all inhibit the building and construction industry’s capacity to get on with the job,” Ms Wawn said. House approvals over the three months to July 2024 increased by 57.6 per cent in Western Australia compared to the same time in the previous year. This was followed by Queensland (+22.1 per cent), Victoria (+8.8 per cent) and South Australia (+4.4 per cent). The other jurisdictions recorded a decline over the same period, led by Tasmania (-19.3 per cent), the Australian Capital Territory (-12.4 per cent), the Northern Territory (-8.2 per cent) and New South Wales (-4.7 per cent).  

The Victorian State Government is backing Victoria’s prefabricated construction industry, with a new directory making it easier and more accessible for local manufacturers to work on projects across the state. Source: Timberbiz Minister for Jobs and Industry Natalie Hutchins has launched the latest edition of the Victorian Prefabricated Construction Directory, which features 24 businesses delivering residential, commercial, and infrastructure projects across Victoria. First released in 2019, the directory showcases the range of products and capabilities of each business, making it easy to find manufacturers that can meet specific project requirements. The directory also highlights innovative examples of the Labor Government’s use of prefabricated construction in building projects, including the two-storey mental health facility extension at the Sunshine Hospital and an affordable regional housing project in Horsham. Prefabricated construction is a modern method of construction (MMC) where buildings and components are manufactured off-site before being transported to a permanent location. This approach can result in lower costs and faster delivery times compared to conventional construction methods. By manufacturing buildings in a controlled factory environment, prefabricated construction minimises delays caused by disruptive weather, reduces waste, and creates safer, more accessible jobs. As the fastest-growing state in Australia, Victoria’s increased adoption of prefabricated construction will play an important role in increasing the supply of residential housing stock by enhancing the productivity and competitiveness of our construction sector. Victoria’s $33.5 billion manufacturing sector is a significant contributor to the economy, generating $23 billion in exports and supporting over 260,000 jobs. To download the Victorian Prefabricated Construction Supply Chain Directory, visit djsir.vic.gov.au/made-invictoria.

I have spoken many times in this place, as senators would be aware, about the significant contribution that is made by our sustainable forestry industry, given the important role that it has played in my home state of Victoria and obviously across the country in other states, and the importance of being able to achieve emissions reduction targets. I think that’s something that always gets forgotten in the debate or discourse around these issues when they do come up from time to time in this place: that forestry, forest management, the timber industry, can actually play a positive role in helping governments across the world to reduce our emissions. We know that trees absorb carbon. Using timber products stores that carbon. Then other trees are planted to replace the timber that was used for those products. So, by definition, as to what is being discussed here, they are very much sustainable, from when the trees are planted all the way to us using those products for whatever they might be used for. It is great to see the positive role that forestry plays in climate action being recognised and encouraged on the world stage, as new research does urge nations around the world—and this has been discussed many times at COP, as other world leaders around the world recognise the importance of the industry and that sustainable forestry plays a very positive role and thereby also addresses an emerging global timber and wood supply gap as the world pivots to climate-friendly fibre supplies. It is no wonder that demand for timber products is increasing, and, if we do not support a sustainable industry in forestry, this demand will be met either by unsustainably sourced timber or by other products that do not have the same climate benefits and may even contribute to higher emissions. That is something, sadly, that does not get acknowledged by some in this place. This is one of the great frustrations that I have with some senators who fail to understand that and the positive role that forestry plays. It is also the case that we have seen, time and time again, many activists, particularly those in my home state of Victoria, doing everything they can to disrupt the industry—to ruin the lives of many people in regional communities where the sole employment, the sole source of income, the sole lifeblood of many regional towns, is timber and the forestry industry. We have one of the most sustainably-managed forest industries in the world. That’s something we should be very proud of. We have strict regulations. Yes, there are times when we do need to make improvements; there are times when we do need to make improvements such as those in the bill that is before us today. But we should not also rubbish an industry that supports tens of thousands of jobs, does have a positive role to play in the environment and helps us get to our targets for reducing emissions by 2050. The amendments that the bill proposes aim to better protect the Australian market from illegally harvested timber and timber products and support legal and sustainable trade by improving regulatory tools and action for non-compliance. As we know, illegal logging has devastating consequences for our climate, the environment, people and the economy, and it is a driving force of various environmental issues around the world. As a member of the Rural and Regional Affairs and Transport Committee, as well as being the co-chair of the Parliamentary Friends of Forestry, Timber and Paper Products with my good friend Senator Duniam, I have seen firsthand the major role that Australia’s forest products play in promoting sustainable forest management. The Albanese Labor government understand the importance of combating illegal logging, and the department of agriculture is heavily involved in international efforts to promote sustainable forest management. It’s an industry that we must preserve and protect, and this bill will keep Australia’s logging laws at the forefront of international efforts to prevent illegal timber harvesting and associated trade. The bill will also enforce a new requirement on importers, and, as we heard earlier, it’s important that the importers play a positive and significant role in how we manage and try to understand where timber is sourced from around the world. Sadly, I know Senator McKim mentioned the Greens saying the bill doesn’t go far enough, but the only things that will satisfy the Greens are the shutdown of forestry in Australia and the complete shutdown of these jobs and these communities right across regional Australia. The irony is that they want to import timber from countries that don’t have the same standards that Australia has. What we have heard, time and time again, from various inquiries and reports from right around the world and here in Australia is that there are some countries that we do import timber whose standards are, frankly, not up to scratch. Yes, they might have the official stamp that we all believe means that it is certified to acceptable standards—standards that we would hope, Senator McKim, would actually be the standards that you and I, and others in this place, would accept. But, unfortunately, we know that there are some countries where timber is sourced in which that it is not the case. They are not up to the standards that we, as Australians, should be accepting and should be importing into this country, hence why we are introducing this bill. There is also a requirement on the processors to give notice prior to importing all processing timber products, giving the government more information about what is entering the market. It will also allow for more flexible enforcement options, including expanded monitoring and investigation powers, strict liability offences, injunctions and enforceable undertakings under the act. It is also important to note that, before the current regulation, which was introduced back in 2012, around 10 per cent of timber imported to Australia each year was estimated to be illegally logged. What a disgrace! […]

Victoria’s timber towns are set to be stripped of more jobs, as Premier Jacinta Allan prepares to cut 208 staff from her government’s Bushfire and Forest Services Group across 99 regional sites, according to The Weekly Times. Source: The Weekly Times Orbost, Omeo, Heyfield, Bairnsdale, Yarram, Corryong and other towns have already been hit by Allan Government’s termination of native timber harvesting on January 1 this year, which forced many workers to find jobs elsewhere. But documents obtained by The Weekly Times show the government is now preparing to cut back regional forest and firefighting jobs, peppering the losses across the state. The staff consultation documents shows 118 of the 208 job cuts will come from the BFS Group’s forest fire operations staff, who are scattered across regional Victoria, especially in the state’s east. All up the Bushfire and Forest Services Group’s staff numbers are to be cut from 1925 to 1717. Orbost forestry consultant Garry Squires told The Weekly Times the town had already lost timber harvesting and mill jobs, as well as seven VicForests staff, who had taken redundancies. “Any further cuts make it more difficult to deal with the inevitable fires,” Mr Squires said. “Unfortunately it’s the frontline people who’ll go, while middle managers hold onto their jobs.” Gippsland East Nationals MP Tim Bull told The Weekly Times “on the cusp of summer, with fuel loads at record levels, the government is cutting fire operations staff”. “We are going to burn again, so we need better resource not less. This is terrible news.” The Weekly Times says the cuts appear to have been triggered by budgetary pressure resulting from DEECA absorbing the VicForests operations and forestry staff, plus taking on some of the former native timber harvest and haulage contractors and their heavy machinery. The Community and Public Sector Union is in negotiations with the Department of Energy, Environment and Climate Action, with a spokesman stating it was doing all it could to protect regional jobs. DEECA’s consultation document states “since the transfer of fire functions and people from Parks Victoria, BFS is now located at 99 regional work centres across regional Victoria. “The government’s commitment to end native timber harvesting has changed our work programs.” Environment Minister Steve Dimopoulos told The Weekly Times “DEECA’s Bushfire and Forest Services Group was consulting with staff about a proposed new model that will deliver value for Victorians and ensure we have the right people working on the right things – including making sure our communities can continue to enjoy the great outdoors while protecting what we all love about the bush. “We will maintain a strong regional presence across Victoria and focus our skilled staff on a forest and fire management program that delivers for local communities. The proposal is the subject of consultation with staff as DEECA finalises the model.”

The Network for Certification and Conservation of Forests launched its  PEFC-endorsed national Trees Outside Forests  certification standard in New Delhi last week. Source: Timberbiz “In India, trees outside forests resources play a vital role in the timber production sector, contributing significantly to meeting the country’s wood fibre needs. Currently, TOF resources are estimated to fulfil more than 85% of the industrial wood requirements,” said Abhilasha Guleria, Assistant Director of NCCF. “A significant portion of the timber production from TOF resources comes from marginal and small landholders.” Together with the Netherlands and Portugal, India is among the first three PEFC national members to achieve PEFC endorsement for their national requirements of TOF certification. That means that in these countries, people and organisations with trees growing outside of forests can now achieve PEFC certification of their sustainable management practices. The event was held with the presence of Eduardo Rojas Briales, Chair of PEFC International, and Richard Laity, Manager of PEFC in Asia Pacific, and enriched by the active participation of key stakeholders who play a crucial role in advancing sustainable forestry practices across various industries. The endorsed TOF standard is “an action to reality”, said Eduardo Rojas Briales, recognising the contribution of millions of small farmers to the forestry sector. “It is crucial to establish a consistent, adaptable framework that supports the widespread yet strategic contribution of millions of farmers to the wood supply, ensures the certification of these resources, and diversifies the income streams of small farmers,” he added. In his opening speech, he emphasised the immense potential of forestry in achieving the Sustainable Development Goals (SDGs), particularly in preserving vibrant rural areas with living standards equal to their urban counterparts. He also reaffirmed the founding principles of PEFC, including its bottom-up governance, key achievements, and emerging priorities, all guided by the meaningful mission to unlock the full potential of forests. While the definition of trees outside forests is similar around the world, their occurrence and function vary widely, calling for national requirements. In line with the PEFC bottom-up approach, each country develops their own national standard based on PEFC’s international TOF requirements, part of the PEFC Sustainable Forest Management Benchmark standard. The development of India’s TOF started from the recognition that trees outsides forests are the major supply of raw materials to market; however, so far, there has not been any working model for smallholders to organise themselves and get their wood certified. “The PEFC endorsement is a game-changer, bringing global recognition to India’s TOF standards and paving the way for the sustainable growth of our timber industry,” highlighted R. R. Rashmi, Member of the NCCF Governing Board. “The exporting wood-based industry, including furniture, pulp and paper, and handicrafts, largely benefit from this TOF certification, because it ensures a reliable supply of certified raw materials, meeting the increasing demands for legality and traceability in international timber regulations, such as the EUDR,” said A. M. Singh, Director General of NCCF. In the panel discussion after the launch, A.K. Bansal, PEFC International Board Member, also concluded that the newly launched TOF certification will support small forest owners and certified entity to access the global carbon market.

Remsoft has announced the launch of new Carbon Management capabilities that extend its suite of intelligent forestry planning solutions powered by the company’s flagship Woodstock Optimization Studio. Source: Timberbiz These advanced capabilities seamlessly integrate with Remsoft’s Strategic Optimization solution, responding to the growing demand within the forest industry for intelligent technology that enhances global sustainability performance. The new Carbon Management solution improves how forestry companies manage carbon offsets, combining advanced algorithms and data-based calculations to produce faster, more accurate carbon estimations for forest carbon projects. Approved by the American Carbon Registry and adhering to leading carbon crediting standards, Remsoft’s Woodstock modeling technology ensures that clients can confidently meet their compliance requirements. Current carbon management practices are often manual, labor-intensive, and error-prone, leading to conservative estimations that undervalue the true potential of forest assets and revenue. This cautious approach is primarily driven by the risk of regulatory penalties and the potential need to repay miscalculated carbon credits. Remsoft’s solution streamlines and accelerates the carbon modeling process, enabling forest managers to produce carbon models with unprecedented accuracy. This efficiency reduces what used to take months into just days, thereby maximizing revenue, accelerating project timelines, and easing regulatory compliance—all from one secure platform. “For those managing forests, our latest offering provides a way to simplify carbon modeling and more effectively balance sustainability, compliance, and profit,” said Doug Jones, Remsoft President. “Landowners, TIMOs, and forest managers can more precisely navigate the dual demands of environmental responsibility and financial performance to surpass their sustainability goals and unlock significant revenue opportunities.” Remsoft’s Carbon Management solution marks a significant advancement in improving the accuracy and efficiency of forest carbon management. Integrating these capabilities within Remsoft’s industry-standard Strategic Optimization solution empowers the industry’s continuing shift towards holistic forest management that effectively balances economic growth with forest health and sustainability. To learn more about Remsoft’s Carbon Management solution, visit https://remsoft.com/carbon-management/.

Researchers from the Swiss Federal Institute for Forest, Snow and Landscape Research (WSL) and EPFL are spraying water vapour into the crowns of mature pine trees in the Pfynwald forest in the canton of Valais. The large-scale experiment is designed to reveal the impact of soil and air drought on forest trees in the context of climate change. Source: Timberbiz Something peculiar has been happening in the treetops of the Pfynwald forest in the canton of Valais since early summer: numerous high-pressure nozzles mounted on tall frames are spraying water vapour into the 12-metre-high treetops of mature Scots pines. The installation is part of the ‘VPDrought’ experiment, a world first that aims to unravel the effects of soil and air drought in a natural forest ecosystem. The water vapour increases the humidity – a sophisticated technique uses high-pressure nozzles to atomise water into tiny droplets that evaporate so quickly that neither the trees nor the ground get wet. The project, which is funded by the Swiss National Science Foundation, the WSL, the EPFL and the SwissForestLab, aims to understand how hot and dry conditions affect the resilience of forests and which processes lead to the death of trees. The climate is getting hotter and drier, as it already is in many places in the Valais. The consequences are already being felt: in the canton of Valais and in the neighbouring inner-Alpine dry valleys (the region of Innsbruck, Lower Austria, southern Styria, Vintschgau, Aosta Valley), Scots pine trees are dying and being replaced by more drought-tolerant oaks. The WSL has been studying the processes responsible for this in the Pfynwald forest for 21 years. Every night, it waters parts of this forest in order to study the trees with and without drought stress. Climate change is now adding another worrying environmental factor to the mix: increasing ‘air thirst’. The warmer the air, the more moisture it can absorb. This means that the heated atmosphere extracts more water from plants and soil. This ‘thirst’ is called vapour pressure deficit (VPD). VPD is a key factor in how much water trees evaporate through their leaves or needles, and thus has a major influence on the water supply and cooling of the plant. With rising temperatures, it is expected that the VPD will increase exponentially. High VPD values lead to excessive evaporation, which can cause plants to suffer from drought stress. In addition to the direct effects on plant physiology, a high VPD accelerates evaporation from soils, creating a vicious cycle of soil drying, land surface warming and drought stress for plants. What is unusual about VPDrought is that this experiment is investigating the influence of air and soil drought in a fully grown natural forest. To this end, the approximately 130-year-old forest pines are given different amounts of soil water: either the natural rainfall of approx. 600 mm/year, twice that amount (1200 mm/year) through irrigation, or only half the natural rainfall, i.e. approx. 300 mm/year, under a rain canopy. Secondly, high-pressure nozzles are used to disperse water vapour in the crowns of some of the trees during the day. The water vapour reduces the VPD – the ‘thirst’ of the air – by around 20 to 30 per cent. The research will be conducted from the plant cell to the tree and ecosystem level. The experiment started in 2024 and will run until 2028, with results expected in the next few years. An increasing VPD – i.e. air that is becoming increasingly ‘thirsty’ – is a challenge for both agriculture and forests. The continuous and selective measurements of over 100 parameters at the tree and ecosystem level should provide insights into how air and soil drought affects metabolic processes and the resilience of forests to drought. The findings contribute to improved climate-vegetation models and will be incorporated into future forestry strategies and the selection of future tree species.  

Forest & Wood Products Australia (FWPA) has announced the opening of a public consultation period for two draft standards to shape the future of recycled timber use in Australia. Source: Timberbiz The proposed standards, FWPA Standard G01 for Recycled Structural Timber and FWPA Standard G02 for Recycled Decorative Timber, are designed to establish visual grading criteria for recycled hardwood timber in structural and decorative applications. In response to feedback from its members, FWPA has committed to a more active role in the development and revision of industry standards. The organisation is now coordinating and facilitating the creation of these standards, highlighting the potential benefits of industry-developed and owned guidelines. These benefits include increased efficiency, better alignment with industry needs, and the ability to address specific member concerns. FWPA also recognises the broader advantages of maintaining these standards as intellectual property, ensuring they are effectively managed and accessible. This initiative is further supported by FWPA’s WoodSolutions program, which continues to provide valuable resources and education to the timber industry. FWPA has appointed familiar industry specialist Jacqui Bates, Director of Dynamic Impact Group, as Project Manager to lead the development of these inaugural FWPA standards. “This landmark project will set new benchmarks for the industry and serve as a valuable resource for all stakeholders,” said Jacqui. “I am eager to contribute to their successful publication later this year.” In line with FWPA’s Strategic Plan 2023-2028, a Standards Development Program has been established with the aim to develop enhanced building standards and codes that support the use of wood products.  The program has commenced with formal procedures for comment and publication of standards as well as the formation of an industry Standards Reference Panel (SRP) which will provide guidance, support, and advice to FWPA from a stakeholder perspective when developing industry standards. FWPA aims to publish a minimum of two industry-owned standards per year through this program. The inaugural members of the SRP: Prof. Keith Crews (Chair: Advanced Timber Hub, University of Queensland – Academia) Andrew Dunn (TDA-NSW – Industry Associations) Craig Kay (Tilling Timber – Importers) Gavin Matthew (EWPAA – Panels) Tom Rickerby (Wesbeam – LVL, I-joists) Peter Robson (Pentarch – Hardwood) Tim Rossiter (MiTek – Frame & Truss, product users) Dave Belfield (Wespine – Softwood, treated products) Public consultation is open for the two draft FWPA Standards aimed at enhancing the safety and quality of recycled timber products. The proposed standards — FWPA Standard G01 for Recycled Structural Timber and FWPA Standard G02 for Recycled Decorative Timber — seek to establish clear and consistent guidelines for the industry, promoting the use of recycled timber and supporting environmental sustainability through material reuse. These standards are designed to offer a unified framework for grading recycled timber, which is expected to reduce variability in product quality and improve communication between suppliers and purchasers. By providing definitive guidelines, the standards aim to increase confidence among consumers and industry stakeholders, ultimately encouraging the broader adoption of recycled timber. Although these guidelines have served as interim measures, this marks the first time they will undergo a formal review and publication process. The six-week public comment period will run from September 3 to October 15, 2024, inviting feedback from industry professionals and the public. This initiative reflects FWPA’s commitment to industry ownership and intellectual property, marking a significant milestone in the organisation’s efforts to support its members. By developing and maintaining its own standards, FWPA aims to reduce costs for its members, eliminating the need to purchase standards from external organisations. “We are advancing these draft documents through our newly established procedures and collaborating with our reference panel to publish these standards for industry ownership,” Boris Iskra, Codes and Standards Manager at FWPA said. “Our goal is to have future industry standards incorporated into the Building Code of Australia, where appropriate, and to influence how timber can be utilised in the built environment.” While FWPA’s new standards will complement existing Australian Standards, the organisation remains committed to contributing to the broader standards landscape. FWPA will continue to participate in the development of Australian Standards and engage with timber and built environment committees. Through innovation, research, and marketing, FWPA strives to enhance the competitiveness and sustainability of the Australian forest and wood products industry. “Our organisation is committed to addressing industry needs concerning the standards development process and is looking forward to this first round of consultation to support our industry effectively,” said FWPA CEO, Andrew Leighton. The public comment period for these draft standards is now open until Tuesday 15 October, inviting stakeholders to contribute to the finalisation of these important guidelines.

Victoria’s Premier Jacinta Allan has been accused of failing to honour a commitment to meet directly with members of the East Gippsland timber industry. Source: Timberbiz And according to the Member for Gippsland East Tim Bull, this simply shows the government’s complete disdain for the sector. Mr Bull said that in answering a question in October 2023, Ms Allan made a promise in State Parliament that she clearly had no intention of keeping – she agreed to meet with timber workers. “I further pressed the Premier to nominate a date when she (and not a delegate), would meet with shafted harvest and haulage contractors,” Mr Bull said. “Ten months later, and eight months after the industry was callously closed by the Allan Labor Government, the Premier made no effort to fulfill this promise. “These are people who have forcibly lost their jobs and even now negotiations are not finalised in relation to packages,” he said. “At the very least they deserved the time to discuss their compensation with those responsible for putting them out of work, impacting country communities, families and livelihoods. “The Premier has broken her commitment to timber industry workers, and it was clearly a promise she never intended to keep,” said Mr Bull.

Tasmania has been experiencing damaging gale force winds resulting in many fallen trees including damage to privately-owned plantations and native forests. Source: Timberbiz Known in forestry terms as windthrow, trees are uprooted, broken, snapped and overthrown by fierce winds and storms. Unfortunately, these events are the responsibility of mother nature and can occur in any forested area throughout the world including urban areas and involves extensive clean ups, loss and destruction. In response to this recent event, Private Forests Tasmania has compiled information for affected landowners and are available to discuss your personal situation further should you require specific advice. It is important to note the immediate safety evaluation of affected trees within your property, access roads, homes, outbuildings and to livestock. Should you notice unstable trees or down powerlines, please contact the SES immediately on 132 500 or consult a private Tree Arborist to assist with removal of storm affected trees threatening homes and outbuildings. If your matter is less urgent, you may require the services of a consulting forester who can provide critical technical assistance in all phases of your forest management. Affected areas should be identified and monitored with appropriate remedial treatment techniques being identified and implemented where necessary. For example: Edge stabilisation (see below); Re-evaluate the wind risk of the remaining trees and decide to: clearfall, salvage windthrow or leave the windthrow; or if windthrow occurs along a boundary, do not salvage and create a similar new boundary. Retain windthrow as a windfirm buffer or create a new windfirm Edge Stabilisation Edge feathering will reduce wind-loading on boundary trees. Trees in the edge buffer should be removed in the following order of preference: Unsound trees with a large crown, including diseased, deformed, forked, scarred, root rot infested etc. Trees with asymmetric or stilt roots. Trees on unstable substrates, e.g. rocky knolls, large boulders, poorly drained depressions, etc. Tall non-veteran trees, especially with above features or large crowns. Residual trees should be left in the following order of preference: Sound, well-rooted veterans. Sound trees (strong roots and good taper) with relatively small, open crowns. Sound hung-up trees, where safety is not comprised. Stem removal should not exceed 15-20% of the trees in a strip 20-30m from the boundary (not recommended at all in single-story, dense stands). Topping and/or pruning of vulnerable trees may be necessary along boundaries to protect critical areas e.g. reserves, wildlife habitat, etc. 20-30% crown reduction appears to reduce wind risk. Combination of edge-feathering, topping and pruning should be effective in high-risk areas. Additional information is available on our website including Forest and wind risk in Tasmania – guidelines book and the Wind Risk Calculator tool which is available under our TOOLS tab. Private Forests Tasmania’s Directory of Services also has information on forestry professionals. Please phone us on 1300 661 009 for any additional information.

As Australia enters the summer bushfire season, Pano AI, a pioneer in early bushfire detection technology, has announced a major enhancement to its platform with the introduction of advanced weather forecasting data integration. Source: Timberbiz Launched yesterday in Sydney at the AFAC 24 Conference, Australia’s largest emergency management conference and exhibition, the new Weather Map Layers feature enables users to seamlessly track forecasted weather conditions in conjunction with real time fire threats, all in one platform. Arvind Satyam, Co-Founder and Chief Commercial Officer of Pano AI, underscored the importance of having multiple data sources to enable faster and more informed response capabilities. “By providing visibility into temperature, humidity, wind speed, wind gusts and wind direction, Pano AI’s Weather Map Layers offers greater situational awareness, significantly improves decision-making during critical moments and allows for more tactical and appropriately scaled responses to fire risks.” Trained on hundreds of millions of images of landscapes across a variety of environments, Pano AI utilises ultra-high resolution cameras, satellites and artificial intelligence to help fire responders to swiftly identify and extinguish new ignitions before they become a threat. Last summer 33 fire events were averted in the Green Triangle due to Australia’s largest network of smoke detection cameras with plans progressing to expand the infrastructure to cover more blackspot areas for future seasons. The Green Triangle Fire Alliance’s (GTFA) network of 14 cameras, which provide a 360-degree scan of the landscape using AI technology, delivered 24-hour seven day a week observation across 1.3 million hectares of landscape, covering 10 local government areas. Operated by AI specialists Pano AI Pty Ltd, the cameras acted as the first point of detection before the human eye on several occasions and positively identified 24 planned fuel reduction burns for a total of 57 detections for the season. This was in addition to the detection of thousands of private permit burns late in the season. Head of Australia GTM Pano AI, Andrew Prolov, highlighted how weather information is an essential component of understanding bushfire risk. “We are committed to providing the most effective early detection technology to help identify bushfire risks and to prevent fires from escalating out of control,” Mr Prolov said. “The first few minutes are vital in preventing a bushfire from escalating out of control. While we can’t prevent fires from starting, our technology now offers the added capability to overlay important weather data to better understand the conditions in the regions that we are monitoring and to be aware of the changing weather landscape once a fire has started.” Key features of Pano AI’s Weather Map Layers integration: • Comprehensive Weather Data: Users can overlay essential weather data onto the Pano AI interactive map, including temperature, humidity, wind speed, wind gusts, and a dynamic wind particle animation representing wind speed and direction. • Hourly Updates: At the top of each hour, Weather Map Layers will display the forecast for the current hour with a data resolution of 28km. This ensures users have the most current information when responding to fire threats. • Enhanced Fire Management: Responders can tailor their responses to fire risks more effectively by using weather forecasting data to predict how a fire might behave based on weather conditions, enabling more informed and strategic decision-making. Pano AI is deployed across five states of Australia, and now has a presence in New South Wales, Victoria, South Australia, Queensland and Tasmania with 28 separate stations covering over 2 million hectares including forestry, farmland and renewable energy zones.

Forestry Australia is disappointed the Queensland Government is jumping the gun in declaring a Greater Glider Forest Park. Source: Timberbiz Forestry Australia’s Acting President Dr Bill Jackson said while Forestry Australia supports conserving threatened species and habitats, the new commitment has been made without consultation, sound evidence or the application of good governance principles. The comments come in the wake of Environment Minister Leanne Linard announcing 54,000 hectares of greater glider habitat in South East Queensland state forest will be transitioned to a new natural capital tenure. “The Queensland Sustainable Timber Industry Framework was established two months ago to provide government advice and it is due to run until the middle of 2025,” Dr Jackson said. “The Framework’s first meeting was only held two weeks ago yet, the Miles Government has jumped the gun and made this announcement without even taking the time to get appropriate advice. “Good policy needs to be based on sound evidence and assessments and the proposal of the Queensland Government fails on all of this. “The assumption that harvesting timber from native forests is necessarily harmful to biodiversity is not correct and there is indeed strong evidence that forests need to be managed actively. “Well managed forests generate a wide range of ecosystem services, including carbon storage, water, recreational opportunities and fibre, that generate considerable benefits for people while also conserving biodiversity. “It is time to move away from the binary approach of commercial forests vs protected areas and consider a more nuanced approach that considers active and adaptive management along a continuum of sustainable management interventions. “A sustainable future without the use of locally sourced timber, evidence-based biodiversity conservation and effective climate change mechanisms is a nonsense,” Dr Jackson said.

Queensland’s Premier Steven Miles has been accused of pulling an election stunt to appease environmental activists with scant regard for its own timber policy, environmentally sound land management and the many regional communities and thousands of people dependent on the timber industry. Source: Timberbiz Environment Minister Leanne Linard announced on Saturday that 54,000 hectares of greater glider habitat in South East Queensland state forest will be transitioned to a new natural capital tenure. With it, the State will establish a Greater Glider Forest Park. Of the 54,000 hectares, 7500 hectares are set to be placed into Natural Capital Reserve as a potential strategic advance offset for the critical Borumba Pumped Hydro project. Queensland goes to the polls on October 26 with most polls pointing to Labor losing power after nine years in Government. Timber Queensland Hardwood Division Chair Curly Tatnell said the announcement to form a Glider Park in South-East Queensland with predetermined areas of mapped forest made a mockery of the consultative framework the Premier established less than two months ago. “The first meeting of the advisory group under the Government’s new timber policy only took place on 15 August. This group is tasked with providing advice on the scope and options for timber supply and protected areas to be worked through to the middle of 2025,” said Mr Tatnell. “From 2025 the hardwood industry will already face a 40% reduction in state timber supply in the region due to a unilateral decision by the Government in 2019 to cease timber harvesting in the South-East Queensland Regional Plan area,” he said. “Now we have the Government railroading further forest areas to be taken out of production with no consultation with the group or testing of the scientific validity of mapped areas or other alternatives for glider protection. There is also no information on timber supply impacts. This is disingenuous and an insult to the workers and families in our sustainable native forest industry,” Mr Tatnell said. Timber Queensland has written to the Premier seeking assurances for long-term contract certainty for native hardwood sawmillers from state forests which has fallen on deaf ears and put $140 million of planned investment for timber production and 6000 jobs at risk. “We do not support the locking up of forests where there is clear evidence that well managed state forests provide superior environmental and economic outcomes for the community,” Mr Tatnell said. “It also makes a mockery of the Government’s aim to maintain current timber supply levels from 2025 to 2034 as an essential building material in the middle of a housing crisis,” he said. “Grandstanding by environmental activists and a rushed announcement by a government to win over green voters should not determine forest and timber industry policy. Decisions on the longterm management of forests should be evidence-based with empirical data and genuine consultation rather than ideological opinion. “We believe State forests should already be considered part of the protected area system, just like National Forests in the United States and other multiple-use and cultural landscapes across the world, given that state forests are managed in accordance with strict environmental regulation and adopt selective harvesting practices to maintain permanent healthy forests with timber, recreation and biodiversity outcom

FWPA’s ForestLearning program is dedicated to bridging the gap between the forest and wood products industry and schools across Australia by providing Australian curriculum-aligned resources. Source: Timberbiz These resources help educators teach about the importance of forestry, forests, and wood products, while also delving into the scientific principles underpinning sustainable forestry practices. A newly launched educational resource from ForestLearning for primary students sheds light on Australia’s diverse native forests, highlighting how key tree species have adapted to thrive in their environments. The Forest Science Explorers unit for Years 5 and 6, developed in partnership with the Australian Science Teachers Association (ASTA) by FWPA’s ForestLearning program, showcases how sustainable forestry practices leverage these adaptations to ensure the health and vitality of our forests for the future. The Forest Science Explorers unit specifically focuses on how four distinct tree species – Swamp Gum/Mountain Ash, Spotted gum, Jarrah, and Cypress pine – have adapted to their unique environments and how foresters apply this knowledge to maintain healthy, resilient forests. Complementing the ForestVRTM 360-degree virtual tour videos and unit are four new visual fact sheets, featuring hand-drawn life-cycle illustrations that make comparing four of Australia’s forest types straightforward and engaging. These resources highlight the adaptations of each forest type and the trees within them, providing clear illustrations that help students understand the scientific work behind sustainable forest management. Fact-checked and edited by foresters from key organisations, including Queensland Department of Agriculture & Fisheries, the Department of Biodiversity, Conservation and Attractions (DBCA), Forest Products Commission Western Australia (FPCWA), Sustainable Timber Tasmania (STT), VicForests, and Forestry Corporation of New South Wales (FCNSW), these fact sheets ensure content that is accurate, relevant, and reflective of real-world forest science. This connection between biological sciences and forestry aims to inspire the next generation of foresters and forest scientists. The unit includes online interactive or printable workbooks for both students and teachers, embedding immersive education technologies such as video experiences via ForestLearning’s own ForestVR and 360-degree videos and photo tours, providing an in-depth virtual tour of different forest types. The Forest Science Explorers unit made its debut at the Australian Science Teacher’s Association Conference (CONASTA71), where ForestLearning exhibited and presented a workshop to primary and secondary science teachers. At an exhibition stand made entirely from sustainably sourced cardboard from The Cardboard Mill, the resource received significant interest from teachers, many of whom plan to integrate it into their Term 4 lesson plans.

In a world where every purchase affects the planet, Boody urges us to consider the impact of even our smallest choices, starting with our underwear. Source: Timberbiz Boody merges exceptional comfort with significant social and environmental benefits in their supply chain, showing how our clothing choices can make a profound difference. By using FSC-certified bamboo-derived viscose, Boody delivers exceptional softness while supporting the protection of forest wildlife and the rights of communities and workers reliant on sustainably managed forests. The fashion industry faces a critical challenge, balancing high demand with environmental responsibility. While renewable fibres like man-made cellulosic fibres (MMCFs) offer a path toward more sustainable solutions, around 50% are still sourced from uncertified forests. This jeopardises precious ecosystems and underscores the urgent need for change. This year, Boody proudly became an FSC Promotional Licence Holder and an FSC Fashion Forever Green Pact signatory. This commitment highlights their dedication to sustainable sourcing and forest stewardship, ensuring that each garment bearing the FSC label contributes to the responsible management of our planet’s forests. “Sustainability and comfort are the pillars of our philosophy. We don’t view sustainability as an afterthought but as an integral part of our process and purpose,” shares Rebecca Innes, Boody’s Product Lead. Boody’s dedication to sustainability is evident in its choice of materials, which includes products crafted from organically grown bamboo sourced from FSC-certified suppliers. As Rebecca explains, “Bamboo is the world’s fastest-growing plant, requiring no pesticides or insecticides. It absorbs CO2 and produces oxygen at a rate 35% higher than trees.” She continues, “We’re excited to announce our support of the Forest Stewardship Council and our recent transition to becoming Promotional Licence Holders with FSC. We are proud to be the first Australian Promotional Licence Holder signatory to the FSC Fashion Forever Green Pact. Our FSC licence is important to us because we want our customers to know that when they buy our products, the bamboo has been responsibly and sustainably sourced to protect the world’s forests for years to come.” In another step towards sustainability, Boody introduced The Goodness Loop in 2023, in partnership with UPPAREL. This initiative gives old, retired textiles a second life, diverting them from landfills and rewarding participants with $35 to spend on Boody’s basics. Boody is redefining comfort and sustainability in fashion, offering consumers a chance to embrace a wardrobe that cares for both the body and the planet. By choosing Boody’s FSC-certified ranges, you’re not just investing in luxurious basics but also supporting a future where every small choice can have a positive impact on the environment.

Wilding conifers are a major threat to New Zealand’s environment and economy. Understanding how these species invade and re-invade the landscape is critical to win the battle against these invasive trees. Source: Timberbiz As part of the complex puzzle of re-invasion Scion scientists are investigating how animals can affect wilding conifer populations by using their seed as a food source (seed predation), reducing the number of seeds in the environment. Determining what animals eat these seeds, and in which habitats, is crucial to understand wilding conifer re-invasion patterns. One of the suspects that might eat conifer seed is another invasive pest – the brushtail possum (Trichosurus vulpecula). Scion’s invasive plant ecologists have conducted field trials under different environment types (pasture, tussock, beech forest, ground-controlled wilding areas, dead wilding forest) in Arthur’s Pass, South Island, to investigate which animal species are conifer seed predators. Seeds were eaten at variable levels across these areas, with the highest levels of predation seen in the beech and dead wilding forest areas. Low predation areas such as tussock are particularly vulnerable to future invasion and re-invasion as there are higher levels of seed available left to grow. Scion’s invasion ecologist Tom Carlin says this research will support management of wilding conifers and the risk of continued seed spread. “Understanding which animal species are eating conifer seeds, and how quickly, are crucial questions in finding out how vulnerable different areas are to conifer invasion. “Aotearoa is home to many seed-eating birds and insects, however it also supports large populations of exotic granivores such as mice and rats. “By removing these exotic mammals from the environment, which is necessary to protect our native species, there is a risk we will inadvertently help conifers spread more rapidly by reducing their seed predation pressure. This project was initiated to help determine that risk, and if possible, help prevent it.” Early on, Scion teamed up with Willowbank Wildlife Reserve in Christchurch to investigate what animals might be eating the seeds based on teeth marks on the sticks that seed was mounted on. Common knowledge suggests possums don’t eat seeds from the forest floor, so the experiment was replicated in the possum enclosure to find out. Willowbank Wildlife Reserve is home to two possums, Tiny and Dobbie. If the damage done to the sticks in their habitat matched what was observed in the field trial, we could determine the culprits. Out in the field, footage from camera traps and feeding stations confirmed that exotic mammals (mice, rats, possums) were the main culprits although insects were also responsible for eating seeds. Willowbank Wildlife Reserve Community and Conservation engagement manager Shaun Horan shares his enthusiasm for protecting New Zealand’s ecosystems. “Willowbank has been excited to collaborate with the team at Scion for this study. “It harmonises with the conservation efforts Willowbank strives for and has aided us to begin conversations with our visitors about wilding pines in New Zealand.” Wilding pines are introduced species that become invasive in environments if not managed well, threatening native ecosystems (and the biodiversity within), production lands (grazing) and change the vistas of iconic landscapes. The worst wilding offender, Lodgepole pine (Pinus contorta), grows readily and will form dense forests if left untreated. Wilding pines already cover more than 1.8 million hectares of New Zealand with a further 7.5 million hectares of productive or conservation land (approximately 28% of New Zealand’s land area) threatened over the next 30 years. The New Zealand government established the National Wilding Conifer Control Programme (NWCCP) to deal with this growing problem, but continuous management is required. Current one-off treatments are not able to eliminate wildings fully and prevent cleared land from re-invasions. Preliminary analysis shows that current control measures such as hand weeding, felling or herbicide application, are unlikely to achieve eradication. Vive la résistance is an MBIE Endeavour-funded five-year research programme awarded $12.85 million in 2021. The Scion led programme team is investigating effective strategies for long-term resistance to re-invasion of wilding pines. New methods and management approaches are developed and tested under this project and include the support and analysis for operational large-scale control trials, aerial and satellite imaging to detect and monitor emerging wilding pines, multifactorial experiments to identify drivers and inhibitors of re-invasion and computer modelling of the “behaviour” of wilding populations. The highly collaborative programme involves researchers from Scion, Lincoln University, University of Canterbury, Manaaki Whenua – Landcare Research, Australian National University, and the National Centre for Atmospheric Research (USA) to support the NWCCP. This seed predation research is just one piece of the puzzle to understanding drivers of re-invasion risks. This knowledge helps us move towards accurate computer modelling predictions for seed dispersal and to inform recommendations for wilding pine management practices to break the inevitable cycle of treatment, re-invasion and re-treatment. This research was recently published in Biological Invasions. Learn more about Scion’s wilding pine research at https://www.scionresearch.com/science/managing-forestry-risk-and-climate-change/managing-wilding-pines

Scion is welcoming the gene technology reforms announced by the New Zealand Government for their ability to advance research and create a cleaner, greener and more prosperous country. Source: Timberbiz Scion is leading New Zealand in industrial biotechnology, which includes GE, under the experienced stewardship of Dr Alec Foster, who heads Scion’s Bioproducts and Packaging portfolio. A vocal advocate for regulatory reform, he says New Zealand can no longer afford to shy away from the transformative potential of cutting-edge genetic technologies. “A bill that allows for greater use of gene technology will enable New Zealand to embrace gene technologies as a key tool for achieving important environmental and societal goals whilst also improving productivity. “Gene Technologies offers enormous opportunity for tackling challenges like reducing methane emissions from agriculture or reducing emissions and achieving net-zero targets. “The world around us is rapidly evolving and today’s announcement is a step change in New Zealand being able to solve these challenges using biotechnology as well as support various industries to deliver new high-value products and be more competitive on the international stage.” Through favourable biotech regulations, other countries are already well ahead of New Zealand. By 2040,Australia’s national science agency, CSIRO, projects a $19.2 billion benefit and 31,200 new jobs from GE in the food and agriculture sectors alone. The United States is investing billions and aims to replace 30% of chemicals and 90% of plastics with biotechnology-derived alternatives by leveraging genetic engineering and bioengineering tools, using various biomass streams as feedstock. Even the European Union, long cautious about genetically modified crops, has followed the UK and recently voted to ease regulations to maintain crop yields, reduce chemical inputs, and bolster food security amid climate change. In New Zealand to date, gene technologies have been used but restrictive rules and time-consuming processes have made research outside the lab almost impossible. The NZ Government has announced its support for new legalisation to allow for greater use of gene technology, while ensuring strong protections for the health and safety of people and the environment. The bill will be introduced to Parliament by the end of this year. The decision to update New Zealand’s gene technology rules follows consultation with industry and guidance from a Technical Advisory Group. Dr Foster says New Zealand now stands to reap economic advantages comparable to Australia, given the similarities in our agricultural sectors. Beyond agriculture, gene editing and genetic engineering hold promise in sectors like forestry, where Scion is at the forefront of pioneering research. One of Scion’s key projects involves developing sterile pine trees that cannot reproduce sexually, addressing the long-standing issue of wilding pines invading and degrading our natural ecosystems. This innovative approach could enable us to enjoy the economic benefits of plantation forestry while mitigating its environmental risks. Scion is also exploring the potential to enhance carbon capture by trees, a critical tool in our fight against climate change. By modifying genes that control growth rates and biomass accumulation, researchers aim to create trees that can sequester significantly more carbondioxide from the atmosphere. But the opportunities presented by gene technology reform extend far beyond agriculture and forestry. From developing bioplastics and renewable chemicals to engineering microbes for wastewater remediation and carbon sequestration, genetic engineering could catalyse the transition toward a truly circular bio-economy, enabling New Zealand to move away from reliance on petrochemicals and fossil fuels, says Foster. “Away from plants we are exploring many of these avenues with microbes. We are looking at scaling technologies that utilise carbon dioxide and methane, as well as waste streams from dairy, and converting them in a fermenter with bacteria to produce feed, chemicals, and bioplastics – greener products from more sustainable sources.” Dr Foster adds that nearly 30 years has passed since New Zealand last debated the need for genetic engineering. Since then, there is a wealth of evidence and real-world examples that illustrate the profound impact genetic engineering can have on our economy, environment, and even the health of New Zealanders. Thousands of studies and numerous products have also demonstrated the safety of these technologies. “New gene editing techniques, like CRISPR, offer a precise and efficient way to breed crops and livestock, with desirable traits. Such methodologies mimic natural breeding processes but with far greater accuracy and speed. Microorganisms are now being grown in fermenters, similar to brewing, not only providing insulin, components in washing powders, and enzymes for rennet (products New Zealand currently imports), but also producing goods traditionally made from oil. “The potential benefits of gene editing and genetic engineering for New Zealand’s primary sector are vast and varied. At Scion, we look forward to leading the way using our expertise and infrastructure to unlock new opportunities for our primary sector as well as attract investment, foster research and development and create high-value jobs in the burgeoning field of biotechnology.”

It is nine months since the RBA’s last rate rise and according to HIA Chief Economist Tim Reardon market confidence is returning. Source: Timberbiz “It is only the heavily taxed markets of NSW and Victoria that are yet to see a trough in detached home building in 2024,” he said. HIA released its Economic and Industry Outlook report recently. The report includes updated forecasts for new home building and renovations activity nationally and for each of the eight states and territories. “Most housing markets appear to have reached or passed the trough in home building by mid-2024, following the fastest increase in the cash rate in a generation,” Mr Reardon said. “States with good employment opportunities and relatively more affordable land are leading the charge.” Mr Reardon said that Western Australia, Queensland and South Australia appeared to be past the trough in their cycles. The number of contracts being signed for the construction of new homes has been increasing, at least since the start of the year, seeing a new wave of projects commencing construction. “This improvement in home building activity is not evident in New South Wales and Victoria where new tax imposts continue to impair home building,” he said. “Government policies continue to inflate the costs of land and construction in New South Wales and Victoria. Policy changes are also adding to market uncertainty delaying a return of investment into new home building and exacerbating the shortage of housing. “Australia’s economic fundamentals have remained resilient to the rise in interest rates. Unemployment remains exceptionally low, the economy stable and population growth strong,” he said. “Against a backdrop of an acute shortage of housing, households are slowly returning to the new home market. “Australia could be seeing far greater home building volumes, if policymakers would reduce the costs of land and construction that they are responsible for inflating.” Mr Reardon said that productivity in the sector was improving rapidly as the adverse impact of border closures and policy disruptions were replaced with more stable conditions. “Material price rises are back to pre-pandemic levels and labour shortages have eased to some extent,” he said. “Labour shortages are easing as activity levels decline. “These factors are setting the scene for an increase in home building later this year as confidence is restored. “This increase in new home commencements could be accelerated if governments remove the market failures, tax imposts and constraints on the industry, or at least stop increasing housing taxes,” h said. Detached houses: There were 25,890 detached houses that commenced construction across Australia in the first quarter of 2024, up by 5.8 per cent on the previous quarter. This figure is forecast to moderate down by 1.6 per cent in the June Quarter 2024 to 25,470, producing a financial year total of 99,060 commencements in 2023/24, down by 10.1 per cent on the previous year. A modest improvement is forecast thereafter, up by just 0.8 per cent to 99,890 in 2024/25. This would mark the conclusion of the two weakest years for detached commencements since 2012/13, over a decade earlier. Activity is expected to accelerate from here, exceeding 115,000 by 2026/27. Multi-units: recorded 14,240 commencements in the March Quarter 2024, down by 6.2 per cent from the previous quarter and the second weakest quarter for the sector in over a decade. The June Quarter 2024 is forecast to see a bounce back of 15.4 per cent to 16,440, producing a financial year total of just 60,970. This would be down by 4.0 per cent on the previous year. A modest improvement is expected in 2024/25, up by 13.0 per cent to 68,880, which would conclude the weakest three years for the sector since 2011/12, over a decade earlier. Multi-unit commencements are forecast to accelerate thereafter, reaching a peak of 104,240 in 2027/28.