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Department of State Growth

On Island Processing Program

Applications for the On-Island Processing Program (the Program) are now open and will close at 2.00pm on Friday 22 October 2021.

The Program aims to obtain greater value from Tasmania’s forest resources, including forest residues, reduce the risk from exposure to volatility in international commodity markets for woodchips and logs, reduce the need for imported forest-based products, and create jobs - particularly in regional areas.

Grants will be made available to eligible forestry and timber processors to implement significant processing projects, with demonstrated feasibility and a strong business case, to increase the value of wood and/or wood fibre. This could include processing to increase the recovery from logs for higher value uses, or processing to transform the wood and/or wood fibre into new products.

The Program will provide up to $10 million over the next five years, with a maximum grant of $2.5 million and minimum grant of $100,000 per applicant.

The Program guidelines are available below:

On-Island Processing Program guidelines

Applicants should complete and lodge an application online via SmartyGrants through the link below

Apply now

Enquiries can be directed to the Program’s contact officer by email to or by telephone on 03 6166 4461.