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Federal Government approves increase in forestry levies

A proposal to increase forestry sector levies for research, development and extension, and biosecurity, has been approved by the Federal Government. A massive 90% of all voters responded positively to a call by the Australian Forest Products Association last year to show their support for a new RD&E levy component. Source: Timberbiz

The proposal to make the changes was prompted by requests from major Australian growers and members of the AFPA Growers Chamber Research and Biosecurity Funding Working Group.

Assistant Minister for Forestry and Fisheries Jonno Duniam said the increased investment was the result of extensive consultation and communication, led by industry.

“We’re expecting these levies will increase the investment in forest grower research and development by $4 million a year, while biosecurity funding through Plant Health Australia will increase by $900,000 a year,” Senator Duniam said.

“We were approached by the industry with a detailed proposal to increase the research and development and Plant Health Australia levies, which we have now delivered.

“We were able to commit funding through the 2021-22 Mid-Year Economic and Fiscal Outlook, and the Governor-General has now signed the legal instruments for these levy increases, so they are locked in.”

Australian Forest Products Association Growers Chamber Chair, Dr Andrew Jacobs, said forest growers welcomed the finalisation of the process to strengthen forestry biosecurity.

“Research and development in forestry is more important than ever as government and industry seek to manage timber shortages and harness the power of timber and fibre for new carbon friendly products,” Dr Jacobs said.

“The worldwide COVID induced building boom has been further exacerbated by the tragic war in Ukraine driving acute and sustained international timber shortages. At the same time, Australian borders are under pressure from pests and diseases which threaten forest industries and consequently future timber supply.”

Senator Dunium said the payments directly benefited the industry and complimented the broader work the government has been doing to boost investment in forestry research and development.

“This includes the $6 million we have already invested in three regional forest products innovation centres, which has been matched by participating state governments and industry.

“These investments in research and development aim to boost the productivity and profitability of our forestry industry and increase the quality and quantity of timber they can supply.

“These benefits will then flow on to harvesting, processing and construction industries who rely on quality Australian timber – not to mention the public who want to buy quality timber products,” he said.

“Supporting growth of the timber industry does more than just expand a local industry. It builds jobs in rural and regional areas, produces more carbon-sequestering wood, and finances sustainable forest management.

“This is an important investment for our Australian foresters and I am pleased that the Morrison Government has been able to deliver it in consultation with industry.”

AFPA CEO Ross Hampton said the additional funding was critical for R&D and builds the case for a new National Institute for Forest Products Innovation.

“We welcome the levy boost, but over the past two decades research funding has declined in Australia and we need to see that turned around,” he said.

“We need the new NIFPI in Launceston to be fully funded, so Australia can realise its potential in R&D and forest products innovation.”

The forest grower levies will be increased from 1 July 2022.

The Department of Agriculture, Water and the Environment will contact levy payers about the new rates ahead of the 1 July 2022 start date.