Grants up to $1 million to support fostering economic diversification and job creation in communities impacted by the end of native timber harvesting in Victoria.
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What is the Forestry Transition Fund?
The Forestry Transition Fund – Round Two is a grant program by the Allan Labor Government aimed at fostering economic diversification and job creation in communities impacted by the end of native timber harvesting in Victoria. With $12 million in funding available, this program supports businesses and organisations to grow, innovate, and provide employment opportunities, especially for displaced timber workers.
The fund is being delivered in two stages:
- Stage 1 – Expression of Interest.
- Stage 2 – Eligible applicants will be invited to submit an application.
Forestry Transition Fund level of support
Eligible applicants can apply for grants ranging from $10,000 to $1 million. The funding requires a co-contribution, which varies based on project costs:
- Projects costing $10,000–$250,000: $0.50 applicant contribution for every $1.00 provided by the Department.
- Projects costing over $250,000: $1.00 applicant contribution for every $1.00 provided by the Department.
Additionally, a $20,000 Transitioning Timber Worker Employment Incentive Payment is available for each displaced timber worker employed through the project.
Forestry Transition Fund important dates
- Expressions of Interest Close: 5:00 PM, Friday, 29 August 2025 (or earlier if fully subscribed).
- Applications Close: 5:00 PM, Friday, 31 October 2025.
- Register your interest with GrantHelper
Forestry Transition Fund objectives
The program aims to:
- Create sustainable employment opportunities in communities affected by the forestry transition.
- Encourage economic growth by supporting business expansion and diversification.
- Support displaced timber workers through direct employment initiatives.
Projects and expenditure eligible for Forestry Transition Fund support
Eligible projects include:
- Expansion or establishment of facilities, such as factories, offices, or shops.
- Introduction of new technologies or equipment to improve business growth and innovation.
The program prioritises projects that:
- Generate local economic activity and align with community development strategies.
- Demonstrate readiness to start immediately.
- Focus on local procurement and support for regional businesses.
Ineligible Expenditures:
- Retrospective funding (projects started before funding approval).
- Purchase of vehicles for general business use.
- Operating costs or ongoing salary subsidies.
- Projects primarily meeting compliance or regulatory requirements.
- Purchase of property or stock.
- Sponsorships, access road upgrades, and event funding.
Other Forestry Transition Fund important details that you will need to know
Organisations eligible for Forestry Transition Fund support
Applications are open to:
- Private sector businesses.
- Industry groups, chambers of commerce, and incorporated not-for-profits operating as businesses.
- Local councils.
Applicants must:
- Have an ABN and be GST-registered.
- Commit to complying with the National Employment Standards under the Fair Work Act 2009.
Forestry Transition Fund assessment criteria
Applications are assessed based on the following weighted criteria:
1. Alignment with Fund Objectives (50%):
- Number of permanent jobs created, particularly for displaced timber workers.
- Economic activity generated in affected communities.
- Alignment with community strategies and local procurement plans.
2. Organisational Capability and Capacity (20%):
- Quality of project planning, including feasibility studies and market analysis.
- Resource availability and project delivery capability.
3. Risk Management (30%):
- Strategies to mitigate project risks.
- Financial and operational stability of the organisation.
- Co-contribution level and previous funding history with the Victorian Government.
How do I get the Forestry Transition Fund?
Applicants must:
- Read and understand the guidelines.
- Ensure eligibility for the funding. Applicants that do not meet all the eligibility criteria will not be considered.
- Demonstrate a strong alignment with the fund’s objectives.
- Provide complete information requirements.
Information to prepare for the Forestry Transition Fund application
Applicants should gather the following:
- Financial statements for the past three years.
- Business plan with financial forecasts (required for projects exceeding $500,000).
- Risk assessments and feasibility studies.
- Letters of support from local government or community organisations.
See the guidelines for more details of information requirements.
Applying for the Forestry Transition Fund
Complete and submit the EOI form available on the DEECA Forestry Grants website.
Register your interest with GrantHelper to explore your alignment with this grant and how we can assist you to increase your chances of success.
Forestry Transition Fund resources
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