Logging industry revival proposed by Coalition and One Nation ahead of Victoria election

Two years after sawmills fell silent in Victoria's native forests, the logging industry could be revived if there is a change in government at the November election.

While the Coalition and One Nation have committed to restarting native forest logging, which was shut down by the Labor government in January 2024, it is unclear what it would take to get the industry back on its feet.

One Nation's Narracan candidate Ben Lucas said the policy supported country-of-origin labelling laws on timber and wood products, and a self-funding model in which harvest revenue supported forest improvement and fire prevention.

He said the party would consult industry leaders and audit the millions of dollars Labor spent on the logging industry transition fund before settling on a new approach.

He said the party would incentivise the use of Australian timber in construction through a "local wood first" policy in government procurement and would ensure timber was extracted using a selective harvesting model.

"You can't take away the forestry industry from a town like Noojee and replace the economy with a truffle festival once a year," Mr Lucas said.

But when pressed for details, Mr Lucas would not clarify how much it could cost or what would be involved in reopening native forests to logging.

"This is a broad policy and it's very open-ended, but with clear guidelines on how we want to do it and why we want to do it," Mr Lucas said.

"We've got the words on paper and if we get in, we can have some influence on how that happens."

Coalition policy in the works

The Liberal-National Coalition is still working through the details of its policy, but Nationals leader Danny O'Brien previously vowed to restore native forest logging.

Nationals MP Melina Bath, whose portfolio includes timber, said the coalition was finalising its policy but also backed a return to logging.

"We will be announcing a suite of packages and policies in relation to this," Ms Bath said.

"They're still going through a parliamentary process and we make sure … that we've done our costings correctly."

Victoria's Regional Development Minister Michaela Settle said restarting native forestry under a Coalition or One Nation government would cost Victorians.

"Labor is backing forestry workers into new jobs, growing local plantation timber and keeping forestry skills and experience in our forests to reduce bushfire risk and support better forest management," she said.

According to a 2026 Victorian Auditor-General's report, the Victorian government's decision to shut down the industry affected 1,000 workers and 200 businesses.

It found the Victorian government spent $1.5 billion on transition arrangements and 87 per cent of workers had retired or found new jobs.

But it found many had moved into part-time, casual or contract roles and it was "not clear if workers' new jobs meet their needs or are sustainable".

Ms Bath said a revived industry would "look different to what the Labor government shut down in 2024" and would need to overcome challenges, such as rebuilding the workforce.

Orbost District Chamber of Commerce and Industry secretary Garry Squires said any move to revive the forestry sector would be well received in the regions.

"The reality is you can't just start big harvesting operations right across Victoria in a hurry, but start off slowly with thinning operations," he said.

"We've got this great resource of eucalypt forests across Victoria.

Plantation plan

Victoria has more than 380,000 hectares of plantation forest, totalling more than 20 per cent of Australia's plantations.

Victoria also produces about one-quarter of Australia's plantation-grown wood, at a gross value of about $550 million each year.

Victorian Forest Products Association chief executive Andrew White said the sector needed a commitment beyond the election to develop a long-term industry plan.

"Capital investment in manufacturing is not cheap. And in order for there to be a viable industry, whether it's soft wood or hardwood going forward, we need that long-term vision," he said.

Mr White said the sector faced challenges, including balancing demand for hardwood from forests and softwood from plantations, along with managing public forests to protect against bushfire.

"We have a very small amount of hardwood plantations in Victoria … there's an opportunity to continue to invest in those types of plantations over the longer term as well, while we still manage our public forests for forest health outcomes and fire management," Mr White said.