Timber and Fibre Innovation Fund

Deborah Hall:

0:09
Good afternoon everyone.

0:11
Can someone just give me a thumbs up to confirm that you can all hear me?

0:16
Thank you very much.

0:17
So good afternoon everyone and thank you very much for for joining us today for the briefing on the Timber and Fibre Innovation Fund.

0:26
So just introducing myself, I am Deb Hall, the Executive Director of Forestry and Fibre Industry here in Agriculture Victoria, which is an area of the CAR Department of Energy, Environment, Climate Action.

0:40
Today's session will provide an overview of the Timber and Fibre Innovation Fund, a fund that we're really pleased to have been able to announce recently.

0:50
In the presentation, we intend to hear all of the all of the key information around the fund, things like the objectives, the available funding, the eligibility requirements, application process, assessment criteria, and all of the various information that we need applicants to prepare before submit submitting their application.

1:14
The purpose of this briefing is very much to help potential applicants to understand whether any particular project that they might have in mind is suitable for the fund, as well as to understand how they can put their best foot forward in preparing a really strong and complete application.

1:33
I understand that you might have plenty of questions around the fund.

1:38
We're really hoping that this presentation in itself might answer many of the questions that you you have about the programme.

1:45
But there is definitely an opportunity as part of this forum to ask any questions.

1:51
So that can be done through the Q&A chat function of this.

1:55
And we'll, I think we'll just hold over any of the questions till the end, just because there might be questions that are that are answered through the course of the briefing.

2:05
So we'll move to the first slide, which is what is the Timber and Fibre Innovation Fund or as you might variously hear me refer to it, TF.

2:17
Because we do, we do love an acronym in government.

2:21
The TF is a forward looking initiative designed to strengthen Victoria's timber and plant fibre industries for a sustainable future.

2:31
It builds on previous programmes that we've run here in the department.

2:36
For those of you who are familiar with VTF or the Victorian Timber Innovation Fund, we see this programme as building further on on that fund, which we did run some previous rounds on.

2:53
While it might have its early origins in VTF, we do see this being quite different from VTF and they're definitely building on that fund.

3:08
In particular, VTF was designed in the context of of native industry transition and that was reflected in many of the aspects of the programme, particularly including its the eligibility, so who was eligible for it, as well as the intent of what the programme was trying to deliver.

3:27
This programme, being the Timber and Fibre Innovation Fund, shifts the focus from transition to transformation by supporting practical and scalable projects that advance innovation, expand markets and strengthen the sector to meet current and future demands.

3:47
The funds key objectives focus on these three areas on the screen.

3:53
So firstly, it aims to advance emerging technologies and market opportunities by supporting investment in innovation technologies and new markets.

4:03
Secondly, it aims to improve manufacturing and processing capabilities by helping businesses to improve efficiency, reduce waste and create higher value products.

4:14
And thirdly, it aims to expand opportunities for alternative plant fibres, including commercially viable applications for materials such as hemp, bamboo and other fibre sources.

4:27
I probably would just note that while we call out fibres such as hemp and bamboo here, it's those aren't exclusive examples.

4:36
We are just including those as examples, but there might be other plant fibres that would also be eligible.

4:46
On to the next slide to the funding.

4:58
So both what's available and also what might be funded by the programme.

5:03
The total funding that is available through the fund is up to 12 million.

5:09
So basically 12 million is the total value of the funding pool that government is making available for the programme in terms of people's individual applications.

5:21
Eligible applicants can then apply for grants between $50,000 and $1 million and that's excluding GST applications that fall outside of that value range.

5:35
So basically below 50,000 or above 1,000,000 could be considered on a case by case basis.

5:44
What I what I would say is in the case of projects or applications above $1 million, what we would want to see is those projects to really be quite compelling to be supported at a value over $1,000,000.

6:00
So that would be demonstrating significant innovation.

6:04
It might be to do with the increased employment that would be produced and we would absolutely want to be see a strong Co funding matching funding contribution from such such projects.

6:18
All projects require a minimum of a one to one cash Co Co contribution.

6:25
Couple of reasons for that.

6:27
Certainly we want to maximise the amount of the impact of our own funds.

6:33
So it's about ensuring that we can fund a number of projects, but it's also about ensuring that we have buy in from the applicants to the programme.

6:46
So we want to make sure that the government's funds into this programme are absolutely being directed to projects where applicants have really strong buying themselves in the project that is being undertaken.

7:01
Some examples of the types of activities or projects that are eligible for funding.

7:07
The fund based support projects that make operations smarter and more innovative, create or improve products and processes, upgrade equipment for innovation, develop new products from alternative fibres or test and commercialise new ideas with practical and market ready outcomes.

7:31
I would say really, really strongly, if there's one message that you were to take away today, it is that funded activities must really clearly aligned with the objectives of the fund and they need to really demonstrate strong potential to deliver industry, economic, social and environmental benefits.

7:52
What do we mean by that?

7:54
Things like job creation, projects that improve recovery or embed resource efficiency so more output can be achieved with less input, projects that can demonstrate productivity gains that could extend, for example, to tree bathing or genetics, and projects that can scale emergency techno, emergency emerging technology or practises.

8:24
On the flip side, I would say what we going to some of the things that we're not really looking for.

8:30
The fund isn't about supporting early conceptual planning such as feasibility studies and in a similar way it's not really about supporting high level strategy work.

8:42
What we are looking for is projects that will deliver tangible in outcomes from the project in itself.

8:51
It's also not about extent supporting extension activities.

8:56
That said, projects may include a socialisation element to them where the activity can increase uptake of a technology or initiative.

9:06
And that of course, as I indicated earlier, the fund is not just about wood fibre, but open to alternative fibres, bamboo, hemp, other plant fibres that can be domestically sourced and stimulate local economic activity and make domestic manufacturing better, smarter or more sustainable.

9:28
Move to the next slide.

9:33
Eligibility criteria.

9:36
So to be funded under this programme, you need to be eligible.

9:44
Firstly, we've got some eligibility that is very specific to this programme.

9:50
So to be eligible an applicant must be either a business or an organisation operating in Victoria in the forestry, plantation, agroforestry or plant fibre industry, including manufacturers, or could be a business that is a significant user of timber or plant fibre.

10:12
It might be that we have applicants that are interested in teaming up as a as a partnership or a consortium.

10:22
We do welcome those types of applications that might be two or more organisations collaborating on one programme 1 project.

10:32
It should be noted though that if successful, what we would be looking to do is into enter into a grant agreement with just a single entity rather than multiple entities for that project.

10:45
And then secondly, beyond the the projects with these programmes, specific eligibility requirements, there are a range of eligibility requirements that tend to be just general eligibility requirements for grant programmes within government.

11:00
So those are the ones that you see in the second half of the screen.

11:03
This includes having an Australian business number, being registered for GST, operating or expecting to operate in Victoria, meeting industrial relations obligations under the National Employment Standards, being work safe compliant and agreeing to abide by the Buying for Victoria Code of Conduct.

11:25
I would really encourage applicants to review all of these requirements really careful carefully before applying because this is the earliest threshold requirement in the programme.

11:38
So not passing eligibility means that a project can't then proceed to even being assessed.

11:45
This is a, this is a hurdle requirement effectively.

11:49
Next slide.

11:50
Thanks.

11:54
OK.

11:54
So this slide outlines the the key stages in the application process.

12:00
So the process begins with applicants reviewing the programme guidelines and contacting us and our programme delivery team if there are any questions about eligibility or about the application requirements.

12:14
Really encourage people to undertake this step early so that this type of these types of questions aren't arising too late in the application process.

12:27
Applications and submit an application through the D Cut online grants portal.

12:33
What then happens is that our programme delivery team will review the project and applicant eligibility and then if eligible, the application progresses through assessment.

12:47
A financial risk assessment is undertaken for all grants that are above $50,000.

12:53
This is based on financial information provided by the applicant as part of the application process.

13:00
Applications will then be considered by an assessment panel, so that assessment panel is an internal departmental assessment panel.

13:09
Following that assessment, the panel makes recommendations to the Minister for Agriculture around projects that should be funded.

13:19
Finally, applicants are then advised of the outcome.

13:22
Successful applicants will receive a letter of offer and the applicant then has the opportunity to respond by accepting or rejecting the offer that's made and then we progress to a grant agreement.

13:41
Indicates on the slide here that the department issues a grant agreement.

13:44
What I would say is generally those grant agreements are Co designed with applicants.

13:51
There are many aspects of that grant agreement that are set, but elements such as the timing and value of milestones will be very much designed on a project by project basis depending on the needs of the project.

14:09
Finally, I would also say that's really important to note that a project can only commence once a grant agreement has been signed and executed by both the the successful recipient of funding and the department.

14:24
So projects items that have already been purchased by the applicant prior to a grant agreement being executed are generally considered to be ineligible for funding.

14:34
And that's something that's really important to to note on to the next slide.

14:45
OK.

14:46
So there are several important dates that applicants should be aware of.

14:52
So applications for the programme have already opened.

14:56
So they opened on 20th of July 2026.

15:00
So the programme is open now for applications and until the close date which is the 31st of August 2026 at 5:00 PM Australian Eastern Standard Time.

15:15
I would emphasise that we really do need to see all applications submitted by this time.

15:22
There might have been points in the past where we've maybe been able to apply a little bit of flexibility around extending timelines on some of our our grant programmes.

15:32
This one isn't one of them.

15:34
We have really tight timelines ourselves around considering and assessing all applications in a a set time frame which doesn't allow for an extension of that close date, so late and incomplete applications will not be considered.

15:50
In the case of this particular programme, applications are then expected to be reviewed during most of the month of September and applicants will be notified of the outcome following completion of the assessment process by the Department.

16:07
The programme guidelines have indicated that applicants will be noted notified by the 30th of October this year.

16:17
Successful recipients may be announced publicly following that point in time and details of the successful progress projects might also be published.

16:30
But I probably will acknowledge from the outset that as I mentioned, this is these are some pretty tight timelines.

16:39
From our perspective, we have been driven by the forthcoming state election in the sense that the caretaker.

16:48
Within government commences in very early November.

16:54
These timelines have been just have been established.

16:57
So we are able to communicate outcomes ahead of the caretaker.

17:04
That is our that that is our intent because otherwise there would have been a period over at least November, but really perhaps longer that would have meant that we wouldn't have had confirmed outcomes for the programme.

17:18
That I know isn't helpful for applicants and is certainly not helpful for us either to have such as an extended time frame with uncertainty about funding outcomes.

17:29
So I understand that these timelines might be quite tight for a lot of applicants, but it is intended to make sure that we can provide outcomes on this programme as soon as we can.

17:45
Over to the next slide.

17:49
OK, assessment criteria.

17:51
So this goes to how applications, eligible applications will be assessed.

17:59
That assessment occurs against 4 weighted assessment criteria.

18:04
So the first criterion is innovation and strategic impact.

18:10
It's weighted at 40%.

18:13
So that considers how well the project aligns with the fund objectives and as well as the project's potential to deliver long term industry benefits through innovation, productivity and market growth.

18:28
The second criterion is value for money.

18:31
That one is weighted at 25%.

18:34
This considers whether the requested funding will deliver strong benefits relevant relative to the investment, including economic, industry and community outcomes.

18:47
3rd criterion is organisational capability and capacity.

18:52
That's weighted at 20%.

18:55
This considers whether the applicant has the readiness, resources, experience and governance arrangements needed to deliver the project successfully.

19:04
And finally, the 4th criterion is risk management.

19:08
That one is also that one is weighted at 15%.

19:13
This considers how well the applicant identifies and manages project risks as well as financial stability and engagement with the department where relevant.

19:25
Next slide.

19:28
OK, preparing an application.

19:31
So this slide outlines the key information the applicant should prepare before submitting an application.

19:39
So applicants need to complete the application form and provide a clear description of the project.

19:47
This needs to really include how it aligns with the fund objectives and the expected benefits for industry, innovation, employment and the local community.

19:58
There's a range of other things that we seek from applicants as well.

20:03
We ask for a project plan that includes key activities, timelines, milestones, deliverables and the people responsible for delivery.

20:13
A detailed project budget is required, including project costs, funding sources, Co contribution commitments and expected expenditure timing.

20:23
Applicants also provide evidence that their Co contribution funding has been secured and is available.

20:30
Additionally, we seek a comprehensive risk management plan that's around identifying key risks, potential impacts and mitigation strategies.

20:42
Financial statements.

20:44
This is what we use to conduct the financial risk assessments.

20:48
So a 5 year financial forecast and supporting information such as business cases, feasibility studies, cost benefit analysis, economic impact assessment, letters of support and any relevant permits, licences or approvals.

21:03
Key message here is that applicants should provide enough evidence to demonstrate that the project is viable, deliverable and financially sound and aligned with the funds objectives.

21:15
And I guess presenting this information straight after I've just shown you the assessment criteria, think about all of these application material as the material against which we will be applying those assessment criteria.

21:32
So the quality and the detail that is applied and provided in any of these application information is directly what plays into the assessment of the project.

21:49
And for example, you know, a, a risk management plan that is very light on detail would probably result in the risk section of the assessment criteria not being rated terribly highly.

22:09
And I think that brings to an end the presentation on TF.

22:15
I'll just head to the next slide and we'll now head into any questions that anyone might have.

Liam Costello:

22:32
Good day, Deb, thanks for that.

22:34
I'll just jump in and ask you a few questions that have come in through the team, through the through the chat.

22:39
So there's been a couple of things that have been responded to around the timing.

22:44
So I think they've covered that that we've we're aiming to have announcements on successful projects prior to caretaker mode coming in.

22:58
So I hope that's respond to that one.

23:00
There was a question about how long do the projects have for the implementation.

23:06
So that's the projects should be completed within two years and that's available information is available in the guidelines.

23:17
I'll just also note that this presentation will be made available on the website so people can can can review it back or share it with with others.

23:28
If you haven't seen it.

23:33
And also, if there are other specific questions that haven't been answered here or that you you'd like to to put to the team, feel free to email the, the, the team on the via the web via email address and we can get back to you on that basis.

23:56
Questions just come in if there will be so, yeah, can I check if there there will be a maximum threshold for capital expenditure by the programme?

24:12
Might need to take that one on notice.

24:20
Yeah, we might have to get back to you on that one and we can email it out.

24:25
But basically we'll go back to the to the point that there's a A1 :1 co-contribution for capital expenditure.

24:33
I, I don't think that there's a, there's a, a threshold for that, but it would be, I guess considered within the specifics of the particular project.

24:52
Any other questions coming through, feel free to just pop them in the Q&A function.

25:08
If there's no other questions, we might wrap it up oh 1 more.

25:13
It's just coming in.

25:15
When will the presentation be uploaded?

25:17
As soon as we can make that possible.

25:20
So in the next day or two, I'll I'll think.

25:28
Here's a here's a question.

25:30
Can contributions be in kind?

25:33
So can contributions be in kind IE processing costs, material salaries to carry out the project to match the one to one requirement?

25:42
The the Co contribution needs to be a cash contribution.

25:45
So in kind contributions won't be considered against the value of the project.

25:50
Obviously if there are additional Co contribution in kind contributions that you know demonstrate value for money in the context of the project that would be strengthen the overall project.

26:02
But it is still a minimum requirement.

26:04
Cash requirement of 1 to 1 is still required.

Deborah Hall:

26:08
Yep.

26:08
So just adding to that Liam, we certain we certainly welcome hearing about in kind contributions.

26:15
In kind contributions could be things that assist the assessment of your project.

26:22
However, as Liam indicated in kind contributions and that can also include purchase of land or property, they're not considered as part of the Co contribution here.

26:36
And we are looking for a cash Co contribution.

26:47
And I might also add that I do understand that no, not everyone perhaps wants to go into the detail of their own projects for their own reasons in forums such as this.

26:59
So we also obviously do welcome any project specific discussions with anyone who wants them.

Liam Costello:

27:18
Yeah, OK.

27:18
So there's just a comment around further discussions around their contributions.

27:22
So feel free to email those through to us.

27:26
It appears that the, the, the questions are slowing, so we might call it there.

27:34
But do feel free to email us at the at the email address there that's listed on the screen, TFIF at digger.victoria.gov dot AU and the team will get back to you and can run any questions to ground through that process.

27:51
Over to you, Deb, to close out.

Deborah Hall:

27:53
Yeah.

27:53
So thanks very much Liam and thanks so much everyone for for joining us today.

27:59
And as we've just mentioned, we welcome any further discussion.

28:02
Please contact us if you need to discuss further.

28:05
But we're really excited about our ability to release this this programme and really deliver some great benefits for for industry and the community from it.

28:16
Thanks, everybody.

Projects that improve productivity, enhance processing capability and unlock new and emerging markets across forestry, plantation, agroforestry and plant fibre industries - shifting focus from transition to transformation.

Requests below $50,000 or above $1 million may be considered on a case-by-case basis. Applications above $1 million must demonstrate significant innovation, compelling outcomes, increased employment and matching funding.

Yes. A minimum 1:1 cash co-contribution is required for all projects. In‑kind contributions are not accepted.

Projects should be completed within 2 years, unless otherwise agreed with the department.

No. Feasibility studies are listed as ineligible.

Yes. The Fair Jobs Code applies to grants $500,000 or more, and Local Jobs First may apply for $1 million grants.