Illegal logging update
New funding will support Australia’s illegal logging reforms.
The Australian Government is investing $5 million from 2026–27 through the Forestry Growth Fund to support implementation of two illegal logging law reforms: the new notification requirement and the use of timber testing technologies to verify species and origin claims. These reforms are provided for in the legislation but are not yet in effect.
The funding will help the department establish a digital notification system for importers and processors to provide required due diligence information before importing regulated timber products or processing raw logs. Earlier access to this information will support more timely risk assessment and targeted compliance activities.
The funding will also support the integration of timber testing technologies within the department’s compliance operations. These technologies will help the department to verify claims about the species and origin of regulated timber products where appropriate, supporting a consistent, evidence-based approach to implementing Australia’s illegal logging laws.
This work will be delivered progressively over several years, with the Government keeping stakeholders informed as the digital system and timber testing capability are developed, including through future e-updates and consultation on implementation and transition arrangements.
APPLYING DUE DILIGENCE TO PRODUCT TYPES AND STOCK KEEPING UNITS
Guidance has been updated to help clarify how due diligence requirements apply to product types. A common area of confusion is whether due diligence should be applied to Stock Keeping Units (SKUs).
Due diligence applies to the regulated timber product – not to internal SKUs. This means businesses should focus on the actual characteristics of the timber product, including:
- product type and trade name;
- timber species;
- country and area of harvest;
- supplier and manufacturing details.
In practice, this means importers do not need to assess every SKU separately where products share the same timber characteristics. Instead, they can:
- group product types with the same timber inputs and supply chain;
- map multiple SKUs to a single grouping;
- apply one due diligence process to that grouping.
Written due diligence systems should clearly set out any SKU grouping processes that form part of a due diligence process.
REPEAT DUE DILIGENCE EXCEPTION
Where businesses use SKUs, the repeat due diligence exception should be considered at the level of the regulated timber product (or product grouping), not at the individual SKU level.
This means you may rely on a previous due diligence assessment where multiple SKUs map to the same timber product, and you are satisfied that:
- the SKUs represent a product that is materially the same (based on product type, trade name, timber species, harvest origin, supplier, and processing arrangements);
- the product is sourced through the same supply chain;
- the import occurs within the relevant timeframe.
Importantly, reliance on a previous assessment does not remove your other obligations. For each import, you must still:
- gather the required information
- confirm that the SKUs continue to fall within the same product grouping
- verify that key timber and supply chain characteristics are unchanged
- consider whether any new information or changes increase the risk of illegal logging
If differences between SKUs reflect changes in timber inputs or supply chain factors, such as species, harvest origin, supplier, or manufacturing arrangements, those SKUs may no longer form part of the same product grouping. In these cases, a new due diligence assessment is required.
This means the repeat due diligence exception can support efficient management of multiple SKUs, but only where those SKUs genuinely represent the same regulated timber product in all material respects.
