When levies apply
Levy applies to logs produced from trees felled in Australia if the person who owns the logs immediately after felling of the trees:
- sold the logs
- processed the logs for a commercial purpose themselves, or
- had the logs processed for a commercial purpose by another person.
Exemptions
Levy does not apply to logs owned by a state or territory government body.
Levy does not apply to logs produced from trees grown on a farm operated by the proprietor of a processing establishment:
- that are processed at the processing establishment or turned into woodchips in the field, and
- the products and by-products from the processing or wood chipping are for use on that farm.
Levy does not apply to logs that are:
- processed for the purpose of producing fuel wood, or
- produced from trees felled as part of landscaping or because the trees were a safety hazard and processed at the site where they were produced.
Levy does not apply to logs if the person who owns them immediately after felling:
- sold or processed the logs for a commercial purpose in a financial year, and
- the total quantity of those logs is less than 20,000m3.
Records must be maintained to confirm that the exemption applies.
Who collects and pays
The levy may be paid via a third party (collection agent) or directly to us. This depends on whether there is a collection agent involved in the sale or processing of the logs.
Collected and paid via a third party (collection agent)
The levy is collected by the person associated with the sale or processing of the logs. We call this person the collection agent.
The collection agent can be the:
- selling agent, buying agent (if no selling agent is involved), or business purchaser (if no selling or buying agent is involved) where the logs are sold to a business purchaser, or
- proprietor of the processing establishment.
This person deducts or recovers the levy from the levy payer and then pays that amount to us as part of a return.
Paid directly to us (levy payer)
The levy is paid by the person who owns the logs immediately after the trees are felled. We call this person the levy payer.
The levy payer pays directly to us as part of a return if they:
- sold logs themselves, or
- processed logs at a processing establishment where they are the proprietor.
Rates
| Product | Levy rate |
|---|---|
| Logs produced from trees felled in a plantation | 18.5 cents per m3 |
| All other logs | 13.5 cents per m3 |
GST is not applied to Australian Government levies.
See full details of the levy and export charge rates.
Return and payment dates
Quarterly
Quarterly returns and payments are for logs sold or processed.
Return and payment must be received by:
- 31 October (July to September quarter)
- 31 January (October to December quarter)
- 30 April (January to March quarter)
- 31 July (April to June quarter)
Example: For logs sold or processed in the July to September quarter in a financial year, the return and payment must be received by 31 October in the same financial year.
You may not need to lodge a quarterly return.
A collection agent can apply to lodge an annual return if they believe the total amount of levy they will (or will be likely to) pay on logs in a financial year will be less than $1,000 (GST exclusive).
To apply for an annual return and payment, contact the levies team in your state or territory.
Annual
Annual returns and payments are only available to collection agents if we have approved your application to lodge and pay once a year.
Return and payment must be received by:
- 31 August each year (for the previous financial year)
For collection agents where we have approved your application to lodge and pay annually, the return and payment must be received by 31 August in the next financial year.
Late payment penalties apply
Penalties are calculated daily at a compounding rate of 2% of the unpaid amount each month, including any outstanding debt, until the amount is paid in full.
How to lodge a return
You can lodge your return via Levies Online.
After you log in:
- select the return type and period
- complete the information
- lodge your return with us
- make payment to us by electronic funds transfer (EFT) or cheque.
First time lodging with us
You will need to register with us before you can lodge your first return.
You will receive a unique LRS number that you need to include in your return.
If you can’t use Levies Online
To lodge a manual return:
- download and complete the forest grower return form
- email or post your return to us
- make payment to us by electronic funds transfer (EFT) or cheque.
Return information
To lodge a return, you will need to know the:
- quantity (m3) of plantation or other logs sold or processed
- amount of levy payable for each type.
Record keeping
You must keep records relating to each return for five (5) years. The records must:
- be set out for each financial year
- include details of each levy transaction.
Heavy penalties could apply if you fail to meet the record keeping requirements.
Who uses this levy
Recipient bodies for the forest growers levy are:
Definitions
Business purchaser
A person who buys products, goods or services from levy payers while carrying on a business (including as a processor or feedlot operator).
Plantation
An intensively managed stand of trees of either native or exotic species that is created by the regular placement of seedlings or seeds.
Process
This does not include cleaning or washing, brushing, sorting, grading, packing, storage, transport, delivery or debarking.
Proprietor
In relation to a processing establishment, it means the person carrying on the business conducted there.
Levies and related legislation
This information is a guide only. You must be aware of your obligations under relevant levy and export charge laws.
This includes:
- Primary Industries (Excise) Levies Act 2024
- Primary Industries Levies and Charges Collection Act 2024
- Regulatory Powers (Standard Provisions) Act 2014
See more on levy and export charge laws.
Stay updated
Check latest updates in our levy notices.
Contact us
For more on levies and export charges, levies accounts or how to lodge your return, contact the Levies team.