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VIC Timber Supply Chain Resilience Package

VIC Timber Supply Chain Resilience Package

  • The package provides two streams of support for eligible Victorian manufacturers.
  • The Impacted Manufacturers Stream offers grants of up to $3,000.
  • The Highly Impacted Manufacturers Stream offers grants and services valued at up to $145,000.

On 23 May 2023, the Victorian Government announced the cessation of native timber harvesting in Victorian state forests, effective from 1 January 2024. The Timber Supply Chain Resilience Package aims to assist Victorian manufacturers in transitioning their businesses and planning for the future by offering grants, professional advice, and planning services. Eligible businesses must process native hardwood from Victorian state forests to manufacture various products, including flooring, stairs, furniture, doors, windows, architectural features, or pallets.

Key Requirements

Participation in the Timber Supply Chain Resilience Package does not require any financial co-contribution.
Impacted Manufacturers Stream – for manufacturers moderately impacted by the cessation of native timber harvesting
  • Eligible businesses can receive assistance from a Qualified Service Provider of their choice to deliver approved service activities to the business, such as a financial advisor, accountant, lawyer, or tax/BAS agent, to help with business continuity and future planning.
Highly Impacted Manufacturers Stream – offers vouchers for business planning services and advice valued at up to $25,000, with the Department selecting and delivering a service provider to eligible enterprises
  • Stage 1 – Preliminary Business Diagnostic and Future Opportunities Assessment
    • The provider of the service will finish a preliminary business analysis of the impacted businesses, as well as a financial health assessment and an evaluation of potential future opportunities.
  • Stage 2 – Business Transition Plan
    • The impacted company will be provided with a full Creating a Business Transition Plan when needed, by the service provider. The types of services provided by In a business transition plan, specialized in accounting and finance general suggestions, legal issues, and advice business and marketing preparation and guidance on business sale or closure.
  • Eligible voucher recipients will receive an invitation to apply for a grant of up to $120,000 to implement their Business Transition Plan.

What is eligible for funding?

Impacted Manufacturers Stream

The Service Activity provided by the Qualified Service Provider must support one or more of the scope of services listed below:

  • Analysis and recommendations for managing cash flow, preparation or cash flow predictions and budgets
  • Examination of profitability and creation of operational and/or financial business methods
  • Tax advice and planning
  • Strategic strategy to update corporate operations
  • Suggestions for managing debts and obligations
  • Recommendations for workforce management and employee issues
  • Legal counsel regarding the company
Highly Impacted Manufacturers Stream

How the voucher works:

  • Step 1: Businesses can submit applications online at business.vic.gov.au, the website for Business Victoria together with the necessary eligibility proof
  • Step 2: The Department will make every effort to inform Applicants of the results of their final within four weeks of submission of the application
  • Step 3: The service provider will get in touch with the applicant if they are found to be qualified for a voucher five days after being notified to start the preliminary business diagnostic (Stage 1). The Department and the Business will both receive the Diagnostic Report
  • Step 4: The Diagnostic will let the company know whether or not it would be beneficial to create a comprehensive plan for Business Transition. The provider of the service will determine what extra services to supply for that job. There is no requirement for the business to proceed to the Business Transition Plan stage.
  • Step 5: A scope of work will be agreed upon by the service provider and the company. The business transition plan will be created by the service provider.
  • Step 6: The business and the department will get the Business Transition Plan once it has been finalized.
  • Step 7: Business Transition Plans that have been completed may qualify for the opportunity to apply for a grant of up to $120,000 (excluding GST) to implement the steps they have in their plan. Application Information about this grants program will be made available to eligible businesses

What companies are eligible for funding?

Impacted Manufacturers Stream 
  • possess a valid Australian Business Number (ABN) and be a lawfully constituted company and hold that ABN and as of July 1, 2021
  • be a Victoria-based employer that is registered with WorkSafe Victoria
  • be a company operating in the manufacturing sector and falling within one of the following categories ANZSIC codes (Australia and New Zealand Standard Industrial Classifications) beginning of May 23, 2023, unless the Department decides otherwise
    • 1413 Timber Resawing and Dressing
    • 1492 Wooden Structural Fitting and Component Manufacturing
    • 1499 Other Wood Product Manufacturing n.e.c.
    • 2511 Wooden Furniture and Upholstered Seat Manufacturing
  • derive between 5% and 40% of the business’s material inputs (measured by cost) for manufacturing processes from native hardwood from Victorian state forests.
Highly Impacted Manufacturers Stream

The business must:

  • possess a valid Australian Business Number (ABN) and be a lawfully constituted company & hold that ABN and as of July 1, 2021
  • be a Victoria-based employer that has WorkSafe Victoria registration
  • be a manufacturer as of May 23, 2023, and categorized under one of the following Australia and New Zealand Standard Industrial Classifications (ANZSIC) codes, unless the Department determines otherwise
    • 1413 Timber Resawing and Dressing
    • 1492 Wooden Structural Fitting and Component Manufacturing
    • 1499 Other Wood Product Manufacturing n.e.c.
    • 2511 Wooden Furniture and Upholstered Seat Manufacturing
  • be severely impacted by Victoria’s decision to stop harvesting native timber, including:
    • at least 40% of the cost-measured material inputs used in the business’s production procedure using local hardwood from Victorian sources public lands, or
    • at least 40% of the company’s income came from the sale of goods produced utilizing local Victorian hardwood

Is this grant competitive or entitlement based?

Entitlement. Applications are assessed against eligibility criteria.

How can Avant Group help?

When you’re a business owner, you may not have time to work through the red tape and audits required to apply for government grants.

Avant Group is your partner for grant success! We take all the hassle out of the entire grant application process from working through the red tape, writing the application and managing audit and reporting requirements – so you can focus on running your business.

Success Only Fees

Avant Group works on a Success Only Fee basis.

We also offer:

  • All AusIndustry auditing management included at no additional cost
  • Hands on technical project management covering application writing and administration aspects
  • A highly skilled advisory team with consultants from engineering, marketing and finance disciplines
  • Government accreditation
  • A dedicated account manager who will work with you every step of the way with your grant application

Want to know more? Contact us for an obligation-free assessment of your eligibility.