Payments for eligible VIC sawmills

Overview

The Sawmill Voluntary Transition Package is a payment the Victorian Government will make to sawmills to cease purchasing sawlogs under a Timber Sale Agreement or Forest Produce Licence from Victorian State forests prior to 1 January 2024 and surrender their Timber Sale Agreement.

Eligible sawmills can apply for a package including:

• A payment for the contracted or licensed volume of sawlog that will not be supplied or made available in 2023–24.
• A payment of up to $1 million per business for non-fully depreciated plant and equipment used to process native timber from Victorian State forests.
• A payment of up to $150,000 for sawmill site rehabilitation.
• A payment to cover employee statutory redundancy costs.

Check if you can apply

The scheme is open to Victorian-based hardwood sawmills that:

• have a current Timber Sale Agreement with VicForests that includes the supply of E grade or better sawlog from 1 July 2023 to 30 June 2024
• have a Forest Produce Licence administered by VicForests that includes the supply of box ironbark, red gum, durable, common or mixed species sawlog from 1 July 2023 to 30 June 2024
• currently produce sawn timber products as its main output (excluding posts, poles and firewood)
• have a dedicated sawmilling site on private land
• hold a current registered Australian business number (ABN)
• declare that they meet all industrial relations obligations as an employer in accordance with the Fair Work Act 2009 (Cth) National Employment Standards.