Timber and Fibre Innovation Fund

The Timber and Fibre Innovation Fund (TFIF) is a forward-looking initiative designed to strengthen Victoria’s timber and plant fibre industries for a sustainable future.

The Fund builds on Victorian Government’s forestry transition programs by shifting focus from transition to transformation. It supports eligible Victorian businesses to invest in innovation, advanced manufacturing, alternative fibres, and new market opportunities that strengthen the long-term outlook of the sector.

The Fund supports practical and scalable projects that move beyond small-scale trials into real-world implementation, commercial deployment and broader adoption. Funded projects are expected to contribute to economic growth, sustainable materials, emissions reduction outcomes and benefits for regional communities.

Program objectives

The Timber and Fibre Innovation Fund has been established to drive innovation and accelerate growth across Victoria’s timber and plant fibre industries, with a focus on maximising the use of locally grown resources.

The Fund supports projects that develop, demonstrate and implement new technologies, advanced processing methods, and innovative business models, to unlock emerging markets and deliver economic, social and environmental benefits.

Who can apply

To be eligible, applicants must be either:

• A business or organisation in the forestry, plantation, agroforestry or plant fibre sector (including manufacturers in those industries) operating in Victoria, or
• A business that is a significant user of timber or plant fibre.

Applicants must also:

• Have an ABN and be registered for GST
• Be, or expect to be, conducting business operations in Victoria
• Meet all industrial relations obligations as an employer under the National Employment Standards in the Fair Work Act 2009
• Be WorkSafe compliant
• Agree to abide by the Buying for Victoria Supplier Code of Conduct.

Funding activities

Eligible activities include projects that:

• Make operations smarter and more innovative: Support new ways to make forestry, plantations, plant fibre, and businesses who utilise timber and fibre more innovative and/or efficient.
• Create or improve products and processes: Design, develop or implement new products, processes or technologies that deliver innovation/efficiency.
• Upgrade equipment for innovation: Purchase/upgrade machinery to support innovative processes, boost efficiency, or access/create new markets.
• Develop new products from alternative fibres: Invest in products/fibre sources such as hemp or bamboo to grow, innovate or diversify.
• Test and commercialise new ideas: Validate innovative solutions such as tree breeding, bioenergy and genetics toward practical, market‑ready outcomes.

Funding details

• Grant requests between $50,000 and $1 million (excluding GST) will be considered.
• Applications for grants under $50,000 or over $1 million, excluding GST, may be considered on a case-by-case basis.
• Applications above $1 million must demonstrate significant innovation, compelling outcomes, increased employment and matching funding.
• Grants will be awarded through a competitive process. Not all eligible applications will be successful, and the amount offered by the department may be less than the amount requested.

Co-contribution requirements

• A minimum 1:1 cash co-contribution is required for all applications.
• In-kind contributions and purchases of land and property will not be considered as a co-contribution.

Co-contributions may come from equity, loans, Australian Government grants, local government, utilities/providers or other sources (must be disclosed).

Information Session

An online information session will be held to provide an overview of the program, including eligibility requirements, application process, and assessment criteria.

The session will be delivered via Microsoft Teams.

Attendees may submit questions during the webinar using the Microsoft Teams Q&A function. Questions will be addressed by the program team during the dedicated Q&A component, subject to the time available. Attendee microphones and cameras will not be enabled.

Date: Monday 10 August 2026
Time: 1:00 pm to 2:00 pm (AEST)
Location: Online via Microsoft Teams

Register for the information session

Registration is required to attend.

For program enquiries, email TFIF@deeca.vic.gov.au

Additional resources

View the Program Guidelines for information on what you need to do to apply.

Timber and Fibre Innovation Fund guidelines [PDF File - 972.5 KB]
Timber and Fibre Innovation Fund guidelines (accessible) [MS Word Document - 64.8 KB]

Project plan template [MS Word Document - 155.0 KB]

Frequently asked questions