Grants for timber and fibre businesses to innovate

31 July 2026

Victorian timber and fibre businesses are being supported to drive innovation and accelerate growth following the opening of the new $12 million Timber and Fibre Innovation Fund (TFIF) on Monday 27 July.

The fund will support businesses working with timber and plant-based fibres – including alternative plant fibres like hemp and bamboo – to create products for use in Australia and overseas.

It aims to attract projects that improve productivity, enhance processing capability and unlock new and emerging markets across forestry, plantation, agroforestry and plant fibre industries.

Agriculture Victoria Forestry and Fibre Industries Executive Director Deb Hall said the program was designed to help businesses scale up new ideas and move beyond small-scale trials into commercial deployment and broader adoption, supporting jobs, cutting emissions and increasing the supply of low-carbon materials for housing and construction.

'Projects could include those related to advanced timber manufacturing, alternative fibre processing, developing markets and supply chains for engineered timber, use of forestry material in bioenergy, and initiatives that drive demand or enhance the productivity of Victoria’s plantation estate,' she said.

The fund builds on the success of the Forestry Transition Program’s Victorian Timber Innovation Fund (VTIF), which has already supported 71 projects across 55 native timber businesses.

Through that program, businesses have developed innovative building materials such as masslam (a type of engineered timber) and invested in equipment to better use lower-value logs and residual materials for bioenergy and biochar.

TFIF expands eligibility to focus on opportunities that strengthen Victoria’s ability to process timber locally.

The Victorian Government has invested more than $1.5 billion to support forestry industry transition, impacted workers and communities and the management and future use of our forests.

TFIF grants up to $1 million are available with consideration for funding above this subject to conditions. For more information, visit the Timber and Fibre Innovation Fund page.

Media contact: media@deeca.vic.gov.au