The native forest logging industry in Australia continues to receive substantial government subsidies despite decades of financial, social, and environmental decline, as revealed by the ABC's Four Corners program aired on June 22, 2026. The investigation showed that while logging is banned on public land in Victoria, Victorian sawmills are sourcing wood from native forests in Tasmania at taxpayer expense.
Declining Demand for Hardwood Timber
Industry advocates claim Australians have a strong appetite for hardwood from species like mountain ash and alpine ash. However, government data from ABARES shows sawn hardwood timber consumption has plummeted from about 1.4 million cubic metres in 2001-2002 to 318,000 cubic metres in 2024-25—a decline of nearly 80%. In contrast, softwood sawn timber from pine trees dominates the market, averaging 4.2 million cubic metres annually over the same period.
In Victoria, over 80% of wood removed from native forests was used for white copy paper, but demand for this product has dropped 66% in the last 20 years. Australia's consumption of white copy paper peaked at 1.8 million tonnes in 2007-08 and fell to around 660,000 tonnes by 2023-24.
Imports and Exports of Hardwood Timber
Industry representatives warned on Four Corners that ending native forest logging would lead to massive hardwood imports. However, government data reveals imports of dressed and rough hardwood sawn timber fell from 150,000 cubic metres in 2004-05 to 47,000 cubic metres in 2024-25—a decline of nearly 70%. Australia has been a net exporter of sawn hardwood timber since 2022-23, and also during 2008-2011 and 2013-2015.
While Australia exports large volumes of low-value wood products like unprocessed logs (1.4 million cubic metres in 2024-25) and woodchips (4.7 million tonnes), it imports more high-value engineered wood products, such as veneers and cross-laminated timber. In 2024-25, Australia imported 1.1 million cubic metres of engineered wood products but exported only 319,000 cubic metres, contributing to a trade deficit in wood products.
Why Was the Forest Industry Closed in Victoria?
Forest industry advocates have questioned Victoria's decision to close native forest logging. Key reasons include the government-owned company VicForests incurring large net losses—$60 million in 2022-23 and $54 million in 2021-22. Research shows that mountain ash and alpine ash forests in the Central Highlands have been severely disturbed by clearfell logging and high-severity fires. The industry also faced numerous regulatory breaches and impacts on biodiversity.
Victoria's Logging Ban Undermined by Tasmanian Imports
Four Corners showed footage of wood being trucked from Tasmanian forests across Bass Strait to Victorian mills in Heyfield and Powelltown. The Victorian government committed $1.5 billion of taxpayer funds to support the transition away from native forest logging, but the Heyfield mill is 49% owned by the Victorian government. Thus, taxpayer funds are being used to cut forests in Tasmania and process them in Victoria.
Victorian Premier Jacinta Allan rejected the suggestion that Victoria was shifting logging pressure to Tasmania, stating: “We’ll always look at ways to back workers, particularly in these small rural communities where companies like this one, they’re a big and important source of income and support for that area.”
The Case for Ending Native Forest Logging
Researchers have documented roughly one inquiry or review into the native forest logging industry in Australia almost every year since World War II. Despite repeated recommendations for change, the industry cannot survive without massive subsidies. The authors argue it is time to terminate contracts, cease handouts, and fully close the native forest logging industry, transitioning to a well-managed plantation-only forestry sector, as New Zealand did in 2002.
