VIC Timber Innovation Grants Program

VIC Timber Innovation Grants Program

  • Round 3 is now open until 30 June 2025 or until funds have been exhausted
  • Grants available up to $1 million

The Forestry Transition Program in Victoria is offering assistance to workers, businesses, and communities affected by the discontinuation of commercial native timber harvesting in State forests.

The Timber Innovation Grant Program, established by the Victorian Government, aims to support native timber businesses in transitioning to other industry sectors while creating and retaining sustainable jobs. The program provides support to Victorian forestry businesses to explore, test, or implement new and innovative business models, as well as diversify or reorient their core activities towards alternative industry sectors. Grants of up to $1 million are available from the Victoria Government. Funding over $1 million has the potential to be considered on a case-by-case basis.

Key Requirements

Round 3 of the program opened on 31 May 2024 and focuses on assisting existing native timber industry businesses in diversifying their operations, retaining current jobs, creating new sustainable jobs, and stimulating local economies in areas affected by the transition from native forestry.

Funding for Round 3 will be awarded based on an evaluation of the application’s value-for-money and the applicant’s capability to successfully execute the project.
As a part of the program, a cash co-contribution may be necessary on your part.
  • For projects with a value up to $250,000, a cash co-contribution will not be required if jobs will be created or retained
  • For projects totalling over $250,000 a 1:1 cash co-contribution by the applicant is necessary for every dollar exceeding $250,000
  • In-kind contributions may be taken into consideration
The Government’s contribution amount will be determined by considering the following factors:
  • Alignment of the project with the objectives of the Program, specifically focusing on the creation and retention of jobs in Victorian communities affected by the transition from native timber
  • The co-contribution amount committed by the applicant
  • Any previous funding received by the applicant from the Forestry Transition Program, including earlier rounds of the Victorian Timber Innovation Fund, and the current status of funded projects
  • Evaluation of the project’s value for money, with an emphasis on generating broader public benefits, such as fostering local economies and creating new employment opportunities or preserving existing ones
Round 3 of the program consists of:
  • An expression of interest stage AND
  • An application stage

What is eligible for funding?

The activities that are eligible for funding include:
  • Development, implementation, or design of new processes, products, or innovation opportunities
  • The acquisition of mobile or fixed plant equipment (including trailers)
  • Modifications or re-tooling of existing equipment
  • Investment in new product streams and technologies
  • Feasibility studies (government funding contribution limited to $100,000)
  • Engagement of consultants or research expertise for transition support, and other eligible activities aligned with the program objectives that contribute to local economies by creating new employment and business opportunities

Unless otherwise agreed upon with the department, projects funded by the Program must be completed within a timeframe of 2 years. Prior to submitting an application, applicants are required to contact a Forestry Transition representative to discuss the eligibility of their proposed project activity.

What companies are eligible for funding?

In order to be eligible, businesses must:
  • be undertaking business operations in Victoria
  • hold an Australian Business Number (ABN)
  • as an employer, fulfill all industrial relations obligations under the Fair Work Act 2009 (Cth), including compliance with the National Employment Standards
The business must also:
  • currently posses or previously had a Timber Sale Agreement, Forest Produce Licence, or Forest Produce Agreement issued by VicForests that was valid as of 1 January 2023
  • currently posses or previously had a a timber harvest/haulage contract with VicForests that was valid as of 1 January 2023
  • be a haulage sub-contractor who has been contracted to a business with an active VicForests harvest and/or haulage contract since 1 July 2020, and if at least 30% of your annual revenue in the last 5 financial years has been derived from that contract, specific conditions are applicable
  • be a truck operator who has been involved in the transportation of hardwood woodchips or other residues from sawmills holding a Timber Sale Agreement or Forest Product Licence issued by VicForests since 1 July 2020, and if at least 30% of your annual revenue in the last 5 financial years has been derived from transporting hardwood woodchips or other residues from those mills
  • be a road contractor who has entered into a contract with VicForests since 1 July 2020 and if at least 30% of your annual revenue in the last 5 financial years has been generated from road construction or maintenance operations on the road network utilised for hardwood log haulage
  • be a seed collector and if at least 30% of your annual revenue in the last 5 financial years has been derived from a contract with VicForests
  • be a business engaged in forest-based activities and if at least 30% of your annual revenue in the last 5 financial years has been derived from a contract with VicForests, certain conditions apply

Is this grant competitive or entitlement based?

Competitive. Your application will be assessed among other applications by a judging panel.

How can I increase my chances of winning this grant?

By engaging an accredited government grants consultant, such as Avant Group.

Competitive grants often require significant business case development and project analysis to support the application, this may include detailed presentations supporting the project’s merit, projected sales, cost-benefit analysis and more.

As part of your engagement with Avant Group, your account manager will assess the required documents and will provide the following as needed to support your grant submission.

Grant application writeup including a detailed presentation illustrating how the grant funding will contribute to your project, how the funding will contribute to the project’s budget, a project milestone plan, delivery timeline, impact on employment if applicable and a breakdown of the management and leadership team for the project

  • Industry analysis presentation
  • Competitor Analysis Presentation
  • Marketing and Sales Analysis Presentation
  • 3-5 year Cashflow Forecast
  • 3-5 year Balance Sheet Forecast
  • Cost-Benefit Analysis of Grant Funding
  • End-to-end grant application including information collating, analysis and application writing
  • CAPEX (Capital Expenditure) cost-benefit analysis
  • Stakeholder relations and Risk Mitigation Plans
  • Any other relevant forecasting that will support your application

How can I get help with my application? Or know if I’m likely to win funding?

Avant Group offers a no-obligation assessment of your eligibility for funding and will assess your likelihood of a successful grant application.