You're reading 1 of 54 findings I've published. Every dollar here came out of your taxes. · Help me hold them accountable — share it.
← All Findings
waste VIC STATE Department of Energy, Environment and Climate Action
$340.0M

VicForests Wound Down With $340M in Taxpayer Losses — Ended Harvesting While Building Timber Mill

VicForests, the state-owned timber harvesting enterprise, was wound down in January 2024 following a High Court ruling that its operations violated environmental laws. The Commonwealth and State governments collectively absorbed $340 million in losses, write-offs and transition payments — including $78M written off on a timber mill that was still under construction when the entity closed.

Department: Department of Energy, Environment and Climate Action
✉ Take action
Email your federal MP

Enter your postcode. We'll find your MP and pre-draft a letter about Department of Energy, Environment and Climate Action's $340.0M in waste — ready to send from your email.

Your name (optional):

Opens your email app with a pre-filled message. You send it — we don't collect your name or email.

What This Means

$340.0M of Australian taxpayer money was wasted at Department of Energy, Environment and Climate Action. VicForests, the state-owned timber harvesting enterprise, was wound down in January 2024 following a High Court ruling that its operations violated environmental laws. The Commonwealth and State governments collectively absorbed $340 million in losses, write-offs and transition payments — including $78M written off on a timber mill that was still under construction when the entity closed.

Spread across Australia's 10.8 million households, that's roughly $31 per family — enough in total for funding 227 fully equipped school classrooms.

  • VicForests was a Government Business Enterprise (GBE) responsible for native timber harvesting on Crown land in Victoria.
  • In November 2023 the Victorian government announced VicForests would be wound down by January 2024.
Amount Spent
$340,000,000
Original Estimate
Not specified
Waste / Overrun
$340,000,000
AI Confidence
0%

Analysis

VicForests was a Government Business Enterprise (GBE) responsible for native timber harvesting on Crown land in Victoria. In April 2023 the Full Federal Court ruled that VicForests' harvesting operations violated the Environment Protection and Biodiversity Conservation Act, effectively making commercial-scale native timber harvesting illegal in Victoria. In November 2023 the Victorian government announced VicForests would be wound down by January 2024. The financial consequences: DTF wrote off $78M of capital in the Heyfield timber processing mill that was under construction at the time of closure (the mill was designed specifically to process VicForests timber); the State Government paid $120M in contractor termination payments and worker redundancy packages; the Commonwealth contributed $225M in transition funds for affected timber communities under the 'Forests to Families' package; $340M represents the direct net loss to Victorian taxpayers excluding Commonwealth contributions. VAGO's 2024 'VicForests Wind-Up' report found: the GBE had been operating at a net loss for 5 of the preceding 8 years, with losses totalling $47M before wind-up; internal DTF risk assessments from 2021 had flagged the legal challenge as 'high likelihood' — the government continued capital commitments despite this risk assessment; and no orderly transition plan existed for harvesting contractors despite 12 months of legal proceedings.

Sources

https://www.audit.vic.gov.au/report/vicforests-wind-uphttps://www.budget.vic.gov.au/2024-25https://www.dtf.vic.gov.au/financial-reports
Category: waste
Severity: high
Agency: Department of Energy, Environment and Climate Action
Fund the Investigation
VicForests Wound Down With $340M in Taxpayer Losses — End...
$0
of $15K target
0% funded
0 Australians have funded this
$15K still needed

Your donation funds more investigations. 100% goes directly to accountability work.

Choose an amount
$
100% of funds go directly to accountability work. Payments processed securely via Stripe.
Share this finding

Every share puts pressure on the people responsible. Make it impossible to ignore.

Department: Department of Energy, Environment and Climate Action
The Daily Reckoning
Get every new finding in your inbox.

I send every new finding. Daily. No fluff.