RAT Chat - March 2026 # 2 Timber Traceability

Welcome to the second edition of RAT Chat. In this edition, we look at timber traceability, the current state of play, emerging global pressures, and how FTMA is working to support the industry. 

We are seeing increasing volatility in the market, particularly in relation to imported LVL (NOT ALL LVL - only untested, non-conforming, non-compliant LVL). At the same time, expectations around product origin, compliance and verification are rising across both domestic and international markets.

In Australia, timber products are regulated under the Illegal Logging Prohibition Act 2012, administered by the Department of Agriculture, Fisheries and Forestry. The legislation establishes a risk based due diligence framework requiring importers of regulated timber and wood products, including sawn timber and engineered products such as LVL, as well as domestic processors of raw logs, to assess and mitigate the risk of illegally logged timber entering the supply chain. This includes maintaining documented systems to gather information, assess risk and implement mitigation measures where required. Detailed importer and processor guidance is publicly available through the Department which you can find here →  due diligence requirements for importers and due diligence guidance for processors.

Domestically, a significant proportion of timber supply is certified under chain of custody schemes such as PEFC, delivered through Responsible Wood. This framework supports verification of legal origin. In parallel, timber harvesting is governed by state based regulatory systems and state specific guidelines, which underpin sustainable forest management practices across Australia.

Globally, traceability requirements are accelerating. The European Union Deforestation Regulation introduces stringent due diligence and transparency obligations for products entering the European Union market. This includes requirements to demonstrate that products are deforestation free and are supported by verified origin data. The regulation will apply from 30 December 2026 for large and medium enterprises, and from 30 June 2027 for small and micro enterprises.

While most of our sector is not directly exporting into European markets, these requirements are creating flow on effects across global supply chains. Traceability data is increasingly becoming a market expectation rather than simply a compliance requirement. Although the formal responsibility under the regulation sits with the party placing products on the European Union market, the ability to provide verified and structured data is rapidly becoming a commercial advantage.

At a national level, FTMA is now actively engaged as a part of the National Building Product Coalition (NBPC). We’ve joined this coalition to ensure our sector remains informed and appropriately represented. NBPC is an industry alliance working to improve confidence in the building products used across Australia. 

From a practical perspective, traceability, supply chains and communicating product certification can appear complex. The most effective starting point is to focus on one step upstream and one step downstream within your supply chain. In the simplest form this could look like, where did my timber come from? And where is my product going? Establishing visibility of inputs and outputs creates a structured foundation that can be scaled over time.

FTMA is taking active steps to support members and the broader industry. We have led and supported two grant applications under the Federal Government Modernising Agriculture Fund Traceability Round 4. These projects are being developed in close collaboration with industry and research partners to benefit our members. The objective is to develop an industry model that can be applied under commercial operating conditions. We will find out about the success of these projects in a couple of months. 

Traceability is no longer an emerging concept. It is becoming part of the baseline expectation for market access, risk management and supply chain transparency. FTMA’s role is to ensure the industry is informed, prepared and positioned to respond to these changes in a structured and practical way. We will continue to provide updates as this work progresses.

If you have any research or technical enquiries, please feel free to get in touch on 0431 088 918 or via email at rhianna@ftma.com.au