VIC Timber Supply Chain Resilience Package

VIC Timber Supply Chain Resilience Package

Impacted Manufacturers Stream 

  • Applications open until: 30 April 2024
  • Grants: up to $3,000

Highly Impacted Manufacturers Streams

  • Applications open until: 30 April 2024
  • A voucher valued at up to $25,000 to access advice and services by a provider appointed by the Department of Jobs, Skills, Industry and Regions.
  • Eligible voucher recipients will receive an invitation to apply for a grant, allowing them to implement their Business Transition Plan. The grant amount can be up to $120,000, providing financial support for the transition process.

The Victoria State Government has announced that native forest logging will cease by January 1, 2024. To support the transition, the government is offering grants through the Timber Supply Chain Resilience Package to manufacturers of native hardwood products in Victoria. This package provides access to grants, professional advice, and planning services to help businesses transition and plan for the future. Eligibility is limited to businesses that process native hardwood sourced from Victorian state forests to manufacture products such as flooring, stairs, furniture, doors, windows, architectural features or pallets.

Key Requirements

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 – There will be a service provider chosen and delivered by the Department with voucher assistance to qualified 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.

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?

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.