On Island Processing Program grants now open

Posted 20 May 2025

Harvesting and selling wood On-farm benefits Economic benefits and markets PFT Tree Alliance

Applications are now open for the second round of the Tasmanian Government’s On-Island Processing Program to support more local value-adding for our wood and timber industry.

Round 2 will focus on Tasmania’s hardwood plantation timber, while also continuing to provide funding support for other types of timber, providing a total of $8.5 million of grant funding, with up to $2 million available per project.

Minister for Business, Industry and Resources, Eric Abetz, said Tasmania’s increasing supply of plantation hardwood provided a major opportunity to grow the value of the wood and timber products sector.

“Following the success of round 1 and given the importance of sustainable forestry to our economy, regional communities and local jobs, we have made an extra $5 million available through the program, taking the total round 2 funding to $8.5 million,” Minister Abetz said.

“Processing locally grown timber right here in Tasmania not only value-adds but also creates jobs and opportunity, particularly in regional Tasmania.”

Grants will be made available to eligible timber processors to implement processing projects with demonstrated feasibility, a strong business case and demonstrated value-adding to the resource. The new resource offers the opportunity to develop quality products such as: sawn timber, veneer, engineered wood products or new high value timber products.

With Sustainable Timber Tasmania estimating around 125,000 cubic metres of pruned and unpruned millable plantation hardwood logs will be available per year over 10 years, round 2 of the On-Island Processing Program will encourage more local investment on plant and systems to increase the value of our wood, wood fibre and timber products.

The On-Island Processing Program supports businesses looking to invest in equipment and process improvements aimed at capitalising on the strong ongoing demand for high-value products such as architectural and décor grade veneers, load bearing timbers, engineered wood products and quality timber furniture.

In total, the Tasmanian Government has committed a total of $15 million to the On-Island Processing Program to grow the Tasmanian forestry sector’s on‑island processing capabilities. The first round of the Program was launched in 2021 with funding committed to seven projects.

Applications are now open and will close on Thursday, July 31, 2025.

Applications should be submitted using the online SmartyGrants system.