An ABC Four Corners investigation has found that money from the Victorian government, aimed at ending native forest logging in that state, is now supporting the same industry in Tasmania. The report, titled “Timber Turmoil,” follows the timber and financial transactions across Bass Strait, revealing how Victoria’s ban has shifted the industry rather than ended it.
The Victorian government officially ceased logging in its state native forests on January 1, 2024, a decision brought forward from 2030. As part of the shutdown, a transition package of up to $875 million was established to support timber workers and businesses moving away from native timber, according to a statement from the Victorian Greens.
However, the ABC report and statements from the Victorian Greens detail how some of this money is now linked to Tasmanian logging operations. The Greens specifically criticised the Victorian Labor Government after it was revealed that Powelltown Sawmills, which received $9 million in government compensation, is now importing native timber from Tasmania to Victoria.
Leader of the Victorian Greens, Ellen Sandell, described the situation as “deceitful and dodgy,” stating the money was meant to help workers transition into sustainable jobs, not fund the logging of native forests in another state. The party confirmed it had previously referred the government’s compensation payouts to the Victorian Auditor-General’s Office for investigation.
The ABC investigation, led by reporter Jessica Longbottom, highlights how Tasmanian native forest timber is now supplying Victorian mills. This includes businesses connected to the Victorian government itself. One major Victorian mill at Heyfield, Australian Sustainable Hardwoods (ASH), is 49 per cent owned by the Victorian government, as reported by the ABC in 2023. In 2020, directors of ASH established a new company to buy the Western Junction Sawmill in northern Tasmania.
A separate federal government subsidy, the Tasmanian Freight Equalisation Scheme, is also involved, according to documents from a federal inquiry. This scheme, which reduces the cost of shipping goods across Bass Strait, has provided more than $20 million in subsidies to forestry contractors exporting Tasmanian logs to the mainland between 2019 and 2023.
The original investigation by ABC’s Four Corners provides further details on the financial links and the flow of timber between Tasmania and Victoria.