What is the Forestry Recovery Development Fund?
The Forestry Recovery Development Fund is a program designed to strengthen industry and government cooperation to upgrade and secure forestry processing assets while safeguarding and creating jobs in forestry communities.
The objectives of the Forestry Recovery Development Fund program are:
- deliver funding to privately owned wood processing facilities that have been directly or indirectly impacted by the 2019-20 bushfires
- enable wood processing facilities to develop new processing lines for their business, including upgrades to existing facilities and technologies, and new facilities that complement existing activities.
The intended outcomes of the Forestry Recovery Development Fund program are:
- support industry to adopt smarter, more efficient practices in product processing and forestry operations
- provide for regional jobs and support regional communities.
The program will be administered according to the Commonwealth Grants Rules and Guidelines (CGRGs).
Grant agreements will only be entered into once there is legislative authority in place for the program.
The Australian Government has announced a total of $40 million over three years for the Forestry Recovery Development Fund grant program.
- The minimum grant amount is $1 million.
- The maximum grant amount is $5 million.
Applicants can only submit one application for a project (noting this may cover multiple activities).
To be eligible your grant activity must:
- be used to develop new wood products, or secure your capacity to deliver existing products, that you intend to sell solely or mainly into interstate and/or international markets
- have at least $2 million in eligible expenditure.
Examples of eligible activities may include:
- upgrades or adaptation of existing plant and equipment
- development of new manufacturing processes
- investments in new technology, including to diversify product lines.
To be eligible you must:
- have an Australian Business Number (ABN)
- be registered for the purposes of GST
- be a permanent resident of Australia
- have an account with an Australian financial institution
- be financially viable
- have the demonstrated skills and capacity to deliver the project
and be one of the following entity types:
- a company incorporated in Australia
- an incorporated association
- a partnership
- an Aboriginal and/or Torres Strait Islander Corporation registered under the Corporations (Aboriginal and /or Torres Strait Islander) Act 2006
The Forestry Recovery Development Fund program can only accept applications:
- from privately owned wood processing facilities that:
- are not owned by State, and
- do not form part of a State, and
- are not a statutory authority established under a law of a State.
- where you can demonstrate:
- the impact the 2019-20 bushfires have had on your business, either directly or indirectly (for instance through demonstrating impact on future wood supply)
- that your business is viable in the long term (noting your business may have been impacted by the bushfires in the short-term)
- how the proposal will future proof your business and the broader industry
- that there is a strong need for the proposal
- the jobs that the proposal would create or secure
- that the proposal is not being funded through another Australian Government recovery package
- that you can provide a funding contribution of at least 50 per cent to the proposal
- that the grant will be used to develop new wood products, or secure your capacity to deliver existing products, that you intend to sell solely or mainly into interstate and/or international markets
- a clear and detailed description of how the proposal will be implemented, including evidence of how the proposal will achieve value for relevant money such as the link between proposed outcomes or projected deliverables, benefit to the community, and the amount of funding sought.
Applications close 13 October 2020.