Australia's forestry and forest products sector will turn its attention to the Federal Election campaign following last night's 2025-26 Budget that did not deliver any meaningful new investment to help our industries realise their potential for the climate, economy and communities. The Australian Forest Products Association (AFPA) does however welcome a number of small Budget measures and we thank the Albanese Government for that support, Chief Executive Officer, Diana Hallam said today.
"We will now shift our focus squarely to the Federal Election campaign to secure what our sector needs as outlined in our Platform - Australian Timber. Australia's Future., to help fix the national housing crisis, strengthen our sovereign capability in timber and wood-fibre and ensure a healthy and well promoted and understood sector," Diana Hallam said.
"We welcome the additional $20 million for the Buy Australian campaign, but to really drive Australian product in the marketplace, we need the introduction of country of origin labelling to allow consumers to readily choose locally grown timber and wood-fibre. It is currently far too difficult for Australian consumers to discern where timber products come from and we will be campaigning hard for this policy in coming weeks.
"The Budget's $181.9 million in funding for the Tasmanian Freight Equalisation Scheme (TFES) over the forward estimates is acknowledged, but reform and more work is needed to optimise the transport of timber and wood resources across Bass Strait.
"It was also disappointing that the forest products supply chain, as one of Australia's largest manufacturing sectors wasn't included in the Government's Budget announcements around green production credits which went to aluminium and iron. As a sector that is truly carbon positive with innovation potential across a range of nation building products - including bioenergy options from woodchip and timber residues - we really should be at the forefront of the Government's planning in this policy space.
"We also reiterate our support for the $54 million announced over the weekend for prefabricated and modular housing and to assist in certification for this type of manufacturing that timber and wood-fibre businesses are leading the charge on. It is timely that the Government has acknowledged pre-fabrication has expanded from just the old donga to include innovative timber panel systems which are more modern, attractive, affordable and a climate-friendly solution to building.
"So, following the Budget, we will focus on the Federal Election campaign to secure what Australia's forest products sector needs to realise its potential for the nation and the world and we'll work with all sides of politics to achieve our goals," Diana Hallam concluded.
