Supply Chain Support Grants — Forestry

Over 22,000 people are employed in NSW in forestry, logging and associated manufacturing – the majority in Regional NSW. The $2.8 billion NSW forestry and wood product manufacturing industry is a significant economic driver for regional NSW, with a softwood plantation sector industry (pre-fires) value of around $2.24 billion and native forestry sector industry value of $560 million.

On the South West slopes around 40% of softwood plantations have been lost in the fires; while on the North Coast around 50% of private and public hardwood forests have been burnt.

The impacts of the fires will have a significant affect not only on timber growers but also on downstream parts of the industry such as manufacturing.

This package provided financial assistance to forestry businesses impacted by the bushfires from 31 August 2019 to assist with the cost of burnt timber storage, haulage of burnt timber from out of area forests, nursery expansion and measures to improve soil stabilisation, road construction and groundcover recovery in fire impacted Private Native Forests (PNF).

Applications for storage, nursery expansion and soil stabilisation, road construction and groundcover recovery in fire impacted PNF have closed.

The eligible activities and costs have been determined through the development of the Forestry Recovery Plan available on the Bushfire Industry Recovery Package website.

Eligibility criteria

Eligible applicants

Are existing forestry businesses who have demonstrated experience in the industry and will bear haulage charges for the out of area timber
Have an ABN

State-Owned Corporations or statutory authorities are not eligible to apply for Stream 1 as the lead applicant but may partner with eligible applicants for projects.

Eligible applicants for haulage of burnt timber (unprocessed) must be the bearer of the haulage charges for the out of area timber, e.g. the mill or processor.

Eligible projects

Projects must be related to the haulage of burnt timber out of the area, but within NSW.

Eligible costs

Costs of haulage within NSW of burnt timber from out of area forests, subject to the eligible amounts and limits detailed below.

Costs that have already been covered / claimed under insurance or other State or Commonwealth programs are not eligible to be resubmitted for funding.

Eligible amounts and limits

Contributions are available according to the rates below to be matched by an equal contribution from the applicant (except where indicated).

Haulage of burnt timber (unprocessed)
Contributions are available up to $0.10 per tonne for every kilometre hauled which exceeds 100 kilometres from the harvest site to processing facilities located in NSW, up to a maximum contribution of $30 per tonne.

Haulage costs are limited to travel within NSW only.

An applicant contribution is not required in respect of these additional haulage costs, noting that applicants will fund the cost of haulage up to 100 kilometres.

Up to $20 million is available to support the haulage of burnt timber. This includes $10 million from the NSW Government and $10 million from the Commonwealth Government.

Applications for haulage are made in arrears on evidence of expenditure and will be open for up to 12 months or until funds are fully allocated (if within 12 months).

Application process

All applications will be completed online. View and complete the haulage application forms. Applicants will be required to provide the following information:

business details such as location, ABN and demonstration of active participation in the industry where appropriate
details of the proposed project including evidence of cost estimates for each eligible component
a description of how the proposed activities will enable continued operations, support retention of jobs and ongoing economic activity.

Applications for storage, seedling capacity and road and snig track stabilisation and sediment control on unsealed roads in fire-damaged areas covered by an existing PNF Plan are now closed.

Get support

Access support via regionalnsw.business@dpc.nsw.gov.au or call 1300 679 673.

Disclaimer

The department does not guarantee or warrant, and accepts no legal liability whatsoever arising from or connected to, the accuracy, reliability, currency or completeness of any material contained in this publication. Information in this publication is provided as general information only and is not intended as a substitute for advice from a qualified professional.

The department recommends that users exercise care and use their own skill and judgment in using information from this publication and that users carefully evaluate the accuracy, currency, completeness and relevance of such information. Users should take steps to independently verify the information in this publication and, where appropriate, seek professional advice.

The guidelines and fact sheets are subject to change at any time at the sole discretion of the Department of Regional NSW.

FaQs

What evidence do I need to supply for haulage of burnt timber?

Evidence that the timber being hauled:

is burnt; and
is unprocessed; and
the distance travelled over 100 km in NSW to the processing facility. This could include log delivery tickets, photos, Private Native Forest Plan numbers and other evidence to confirm the source location, status of the wood and the destination.

Can I claim multiple trips in one haulage application?

Yes, either the table can be completed in the online form or a breakdown of the trips can be submitted as an attachment.

Can I submit multiple haulage applications, and will I need to complete the whole form again?

Multiple haulage applications can be submitted while applications are open. After your first application has been approved, you will be provided a simplified form for additional claims.

I am a haulage contractor. Can I apply for the Haulage of burnt timber (unprocessed) grant?

The eligible applicant for this grant is whoever bears the cost of bringing in timber from out of area. This will typically be the supplier or the processing facility in NSW. An example would be a saw mill paying for haulage of burnt timber from out of area. This is required to ensure the grant is only claimed once for each tonne of burnt timber. Joint applications from a haulage contractor and an eligible supplier or processing facility will be considered. Letters of support from all project partners should be included in the application.

If the burnt timber is processed at the harvest site before hauling out of area, e.g. chipping, am I eligible for the Haulage of burnt timber (unprocessed) grant?

Yes, if the other requirements of the grant are met and the activity specifically relates to burnt timber.

Are return trips eligible for Haulage of burnt timber (unprocessed) grants?

No. The calculation is based on a one way trip only.

If logs are hauled from the harvest site to out of area via a handling facility, is the starting point for the haulage calculation the handling facility or the harvest site?

The harvest site.

Can I submit an application for haulage before I have completed any out of area haulage of burnt timber?

Yes, if you want to get an initial assessment of the eligibility of your organisation and project. You will be required to provide an estimate of how much burnt timber you expect to be hauling out of area over the next 12 months. To claim funds, you will need to complete additional forms with the evidence of haulage.

Am I eligible to apply for the haulage costs for out of area timber if I am not the destination processor or mill?

Yes, but you will need to provide confirmation that the mill/processor has not, or will not be claiming the costs for the same wood.

Application forms