Forest & Wood Products Australia (FWPA) is pleased to announce the signing of a new Statutory Funding Agreement with the Department of Agriculture, Fisheries and Forestry (DAFF) that will be in effect from 1 January 2025 to 2034. As a Rural Research and Development Corporation (RDC), our Statutory Funding Agreement (SFA) represents the renewal of a 10-year contract between the Australian Government and FWPA.
Key Changes to the Levies Legislation
The new contract is in response to changes in the levies legislation passed by Parliament.
- Streamlining and Modernisation: DAFF ‘s updates to the levies legislation aim to reduce complexity and inconsistencies, making it easier for stakeholders to understand and comply with these regulations. Future adjustments to levy settings will also be simplified. Under the new levies legislation, the new SFA defines FWPA as being the Declared Recipient Body under the Act for the forest and wood products industry.
- Focus on Clarity: The primary goal of these changes is to enhance comprehension and ease of compliance with the levies legislation, while maintaining the individual levy settings as they currently are.
- Government Commitment: The government remains dedicated to providing matching funding for eligible R&D activities conducted by RDCs, with the new legislation designed to streamline the current processes. Specifically for FWPA the new legislation provides access for full matching funding up to 0.5% of sector GVP.
Understanding the Levy System
The levy system represents a long-standing collaboration between the Australian Government and industry. It is designed to bolster productivity and competitiveness in international markets by imposing statutory levies on producers, processors, and exporters. These levies are collected with industry input and are crucial for funding initiatives that benefit the agricultural sector.
Australia’s rural R&D levy system is often regarded as a global benchmark for government and industry partnerships in agricultural innovation. It balances efficiency, inclusivity, and shared responsibility, driving improvements in productivity and sustainability while addressing industry-specific challenges.
- Learn more about the current levy rates via this link.
- For more information about the updated levies legislation and the principles of the levy system, please refer to DAFF’s resources.
Benefits to FWPA Members and industry
This new agreement and modernisation of the levies will empower FWPA to further enhance the services it can deliver to its members and other levy payers, providing substantial benefits to our members and the wider industry.
“On behalf of FWPA, I would like to express our sincere gratitude to the Department of Agriculture, Fisheries and Forestry for their support and partnership, demonstrated by the renewal of our SFA. This new contract is not only a testament to our collaborative efforts but also a commitment to the future of the forest and wood products research and development, and the industry in Australia.
Based on the 2023 GVP of the sector, this new contract makes available approximately $11.5 million per annum in matching payments for R&D investments made by the industry through FWPA. As our sector grows, so will the matching funds available. We are excited about the opportunities this will create for innovation and growth, benefitting our members and the broader community.” said FWPA Board Chair, Craig Taylor.
