11 August 2026

Tasmania eyes new timber contracts to keep log processing in-state

| By John Murtagh
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logs next to a forest

The Tasmanian Government is hoping to enact new contracts that would keep timber processing within the state. Photo: Tasmanian Liberals.

The Tasmanian Government is enacting new long-term wood supply contracts to mandate that timber supplied from the state is processed in the state.

The contracts are currently being negotiated.

Sustainable Timber Tasmania has been requested by the government to investigate the sale of Tasmanian native forest sawlogs to sawmills in Victoria.

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This follows concerns about the on-selling of a small volume of logs interstate.

Sustainable Timber Tasmania supplies native sawlogs to processors in Tasmania, delivering logs directly to the state’s mills, supporting on-island processing and value-adding domestically.

Minister for Business, Industry and Resources Felix Ellis expressed disappointment that a small amount of logs sourced from the Tasmanian Permanent Timber Production Zone has been on-sold to Victoria for processing.

The quantity represented about 2 per cent of the annual sawlog supply.

“Tasmanians rightly expect that timber harvested in our state supports Tasmanian jobs and Tasmanian communities,” Mr Ellis said.

“That’s why we’re taking action to ensure Tasmanian timber is processed on-island.”

Existing contracts negotiated under the previous government do not explicitly require Tasmanian processing, but the current government hopes future contracts will.

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“Our 2030 Strong Plan for Tasmania’s Future is backing the forestry industry and the 5700 jobs it supports, with initiatives such as our On-Island Processing Grants program helping sawmillers invest, expand capability and create jobs in regional Tasmania,” Mr Ellis said.

These measures are aimed at keeping more value in the state and providing additional benefits for Tasmanian industry.

The public report Sale of Tasmanian Native Forest Sawlogs to Victorian Sawmills can be found on the Sustainable Timber Tasmania website.

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