The Commodities Levy (Harvested Wood Material) Order 2019 came into effect under the Commodity Levies Act 1990 on 23 September 2019, which fully replaced the initial 2013 Levy Order.  The levy is applied to all harvested wood products. Previously most work done on behalf of all forest growers was funded by voluntary levies and subscriptions paid by members of the NZ Farm Forestry Association (FFA) and the NZ Forest Owners Association (FOA).

To ensure all forest products are fairly and accurately levied, domestic wood processors and marshalling companies act as data collection agents. Under the Commodity Levy Order the forest owner is solely responsible for paying the levy. Where the forest owner no longer owns the log or other product when it reaches the data collection agent, the owner of the product may pass the levy cost back down the purchasing chain to the forest owner.

The levy allows planning and partnership funding commitments and brings all growers into the industry loop, to play their part in a more cohesive industry.

The levy rate is 33 cents per tonne. Each year the Plantation Forestry Work Programme will be reviewed with appropriate industry consultation and a budget for the next year approved. The levy struck for that period may be more or less than the previous year’s levy, but it may not exceed the maximum levy amount of 33c per tonne.