ABOUT THE LEVY
If you own a plantation forest, small or large, you pay a levy at a fixed rate on the volume of wood material sold.
The Forest Growers Levy Trust (FGLT) is the fundholder of this levy money, ensuring it is appropriately spent in areas such as research, development, biosecurity and promotion, to the benefit of levy payers and forest growers in New Zealand generally.
The levy has been a vital means of supporting forest growers and advancing the interests of the sector.
The current levy rate under the Harvested Wood Material Commodity Levy Order is 33 cents per tonne of harvested wood material. This raises approximately $10 million per year in levy money (depending on harvest volumes).
The levy order is due to expire in November 2025 and is therefore up for renewal.
> Read more about the Harvest Wood Material Commodity Levy
> Learn about the history of the Levy
ROADSHOWS AND WEBINARS
The FGLT held 20 in-person regional roadshows from April through to June. The roadshows were an opportunity for growers to provide feedback on the proposed levy rate before the levy referendum took place.
View the webinar recordings here:
Webinar 1 - recording General (Webinars 1 and 2)
Webinar 3 - recording Environment and Risk
Webinar 4 - recording Small-Scale Growers
Webinar 5 - recording Research and Development
Feedback from the webinars and roadshows has been documented by FGLT and will be captured in its papers to the Minister as part of the levy order renewal application process.
Growers are welcome to submit their feedback on the levy proposal directly to the Minister of Forestry should they not wish to provide feedback through the FGLT.
> View the full levy timeline here
THE 2024 LEVY REFERENDUM PROCESS
The Commodities Levy Act 1990 requires the Forest Growers Levy Trust (FGLT) to conduct a levy referendum every six years.
The last levy referendum in 2019 culminated in forest owners voting to increase the maximum levy rate from 30 cents per tonne to 33 cents.
Eligible forest growers will have the opportunity to vote on whether to renew the levy for another six years at the rate proposed by the Forest Growers Levy Trust during this year’s Forest Growers Levy Vote: 1 – 31 October 2024.
The referendum itself will be conducted through independent election company, Research NZ. The Ministry for Primary Industries (MPI) is responsible for ensuring the levy vote has been conducted in accordance with the law.
Eligible forest growers with a qualifying forest can cast their vote online through forestvoice.org.nz from 1 October until 5pm, 31 October 2024.
Only one vote is permitted per levy payer / forest owner irrespective of the number of qualifying forests owned.
During voting, growers will be asked whether they would like to renew the levy for another six years (2026 – 2031) at the rate set out by the FGLT. Details on the new levy order and the rate proposed by the FGLT will be clearly specified in the voting paper.
To achieve renewal of the levy, votes in support of the levy must be more than half of all participating votes and more than half the total land area (ha) declared by all voting participants.
This means the vote can’t be swayed by a few large forest growers or by a large number of small forest growers who have very few trees overall. It also ensures the vote is a sound representation of the majority of growers, and therefore the majority of the forest growing sector.
If support for the levy is achieved – subject to the Minister’s approval – the new Levy Order will come into effect on 18 November 2025.
> Download the Levy Vote Grower Information Booklet
> Visit the forestvoice.org.nz website to learn more
PROPOSED RATE
The Forest Growers Levy Trust has spent eight months consulting with growers in the lead up to the Levy Vote, resulting in an amendment to the levy rate originally
proposed (40 – 70 cents) by the Trust earlier in the year. The FGLT also sought growers’ feedback on whether the levy is meeting their needs and how they would like to see it invested in the years to come.
Learn more about the levy consultation process here.
The FGLT wants to thank everyone that took the time to attend these meetings and provide their feedback.have their say. Your contributions are vital for ensuring the levy is meeting growers’ needs and helps the FGLT understand how it can best support the sector going forward.
For the upcoming Levy Vote, the FGLT propose a minimum levy rate of 33 cents per tonne of harvested wood material and a maximum levy rate of 45 cents per
tonne of harvested wood material (excluding GST) for the 2026 – 2031 levy order period.
The minimum levy rate will be fixed for the first year of the new levy order (until the end of 2026).
For every subsequent year, the FGLT board will fix the levy rate within the 33 to 45 cent range before the start of each levy year. Any proposed increase to the levy rate in any year will not proceed if it would be against the wishes of those likely together to pay more than half of the total levy collected in the year the proposed increase will apply.
Delivering a stronger return on investment for forestry while balancing the economic pressures growers are currently under was a key consideration of the FGLT when settling on the new 33 to 45 cent levy rate band.
A maximum levy rate of 45 cents would provide forestry with up to $3.5 million in additional levy money each year to spend on industry-good projects and activities.
REGISTER
Growers are encouraged to pre-register their details for voting to ensure they receive timely and relevant communications on the levy referendum.
Please note, registration is not a requirement for voting.
HOW TO VOTE
The referendum itself will be conducted through independent election company, Research NZ. The Ministry for Primary Industries (MPI) is responsible for ensuring the levy vote has been conducted in accordance with the law.
Eligible forest growers with a qualifying forest can cast their vote online through forestvoice.org.nz from 1 October until 5pm, 31 October 2024.
Only one vote is permitted per levy payer / forest owner irrespective of the number of qualifying forests owned.
During voting, growers will be asked whether they would like to renew the levy for another six years (2026 – 2031) at the rate set out by the FGLT. Details on the new levy order and the rate proposed by the FGLT will be clearly specified in the voting paper.
Growers unable to cast a vote online can contact This email address is being protected from spambots. You need JavaScript enabled to view it. and request a voting paper to print, scan and email back to the retuning officer. Alternatively, post your printed voting paper to:
FREEPOST 2088
PO Box 10-617
Wellington 6140
Voting papers submitted after the deadline, be that online or paper-based, will not be counted.
During voting, growers will be asked whether they would like to renew the levy for another six years (2026 – 2031) at the rate set out by the FGLT. Details on the new levy order and the rate proposed by the FGLT will be clearly specified in the voting paper.
The FGLT will communicate the outcome of the levy vote to growers once it is received – likely mid-November or December 2024 at the latest.
> Click here to cast your vote
HOW GROWERS WILL BE NOTIFIED
The FGLT will communicate the outcome of the levy vote to growers once it is received – likely mid-November or December 2024 at the latest.
Growers can expect news and information on the levy referendum to be made available through:
- Forestvoice.org.nz
- The Gazette
- The FGLT website
- Tree Grower magazine
- Direct emails to growers
- Mailouts
- Roadshow dates and information advertised in regional newspapers
- Information in the Forest Owners Association’s monthly e-Newsletter
- The quarterly Bulletin publication
