Forest Growers Levy

Have your say on the submitted proposal to increase the forest growers levy rates

The Australian Forest Products Association (AFPA) has submitted a proposal to the Minister for Forestry and Fisheries Jonno Duniam for an increase to the forest growers levy rates and the introduction of a new threshold.

This proposal is the culmination of industry efforts over several years to address the increasing risks to commercial native and plantation forests, and the products and jobs that the industry provides. The current levy represents an unsustainably low level of collective funding to support RD&E and biosecurity to meet current and future needs.

AFPA undertook extensive consultations in accordance with the Levy guidelines: How to establish or amend agricultural levies (2020) with potential forest grower levy payers around introducing a new RD&E levy, increasing the PHA biosecurity levy and introducing a 20,000m3 exemption threshold.

Over 95% of forest growers levy payers by log volume supported:

    • A new RD&E levy component to be set at $0.035 per m3 in the first year of introduction, $0.06 per m3 in year two and $0.085 per m3 in the third and subsequent years;
    • an increase to the Plant Health Australia biosecurity levy component of $0.045 per m3; and
    • the creation of a volume-based levy exemption threshold for growers producing less than 20,000 m3

In addition to the above, AFPA is also seeking the removal of the regulatory cap on voluntary matched funding. Since 2015, the forest and wood products industry has been the only rural industry subject to a regulatory cap on voluntary matching funding, currently set at $1.659 million per annum. AFPA members are seeking to have this cap removed so that additional research, development and extension projects can be funded within the limits of the 0.5 per cent of Gross Value of Production of the sector, in line with other primary industries.

Click here for the submitted proposal.

30 Day objection period

As part of the process to increase the levy, AFPA must hold a 30-business day objection period.

This period will run from the 14 July to 26 August 2021.

If you are a potential forest growers levy payer and you have any objections to the proposal, you can provide your feedback via three options below:

Any feedback can be provided anonymously if preferred or it will be responded to directly. If you will be submitting an objection please by email please include the subject heading – forest growers levy, ensure you include your contact details if you would like a direct response, and the reasons you are objecting to part or all of a proposal.

Click here for the submitted proposal.