Publication date: 3 September 2025

The new Rules have now been in effect for six months

The Illegal Logging Prohibition Amendment (Strengthening Measures to Prevent Illegal Timber Trade) Act 2024 (Amendment Act) and associated Illegal Logging Prohibition Rules 2024 (the Rules) came into effect on 3 March 2025 and apply for the purposes of relevant imports, and processing of raw logs, on or after 3 March 2025.
 
There were no savings or transitional provisions that allowed for due diligence requirements to be carried out under the former Regulation for relevant imports, and processing of raw logs, on or after 3 March 2025. However, for the first six months of the Rules being in effect, the department conducted assessments with a focus on education and guidance for non-compliance matters relating to the application of the new/changed due diligence arrangements. These transition arrangements have now concluded.

We encourage importers and processors to ensure their due diligence systems are fully aligned with the amended Act and Rules. Guidance material, including factsheets and resources, is available to support compliance, and we welcome feedback on areas where further clarity may assist.

Our compliance approach

The department remains committed to supporting compliance within the regulated community with clear and accessible guidance. When undertaking assessments, the department works closely with entities to ensure a full understanding of their legislative requirements. We aim to facilitate long term, sustainable compliance.

We encourage our regulated community to ensure it is familiar with the department's approach to compliance and how we work with regulated entities to achieve better compliance and regulatory outcomes.

• Our compliance and FAQ webpages have clear information and resources to help you understand your responsibilities and how we check compliance.
• The department's Compliance Policy explains the principles we follow and the tools we use to manage compliance fairly and consistently.
• Our compliance work is also guided by our Regulatory Practice Statement, which sets out how we approach regulation in practice.

Due diligence: It's not just a checkbox

Due diligence in combating illegal logging is often perceived merely as a checklist to meet regulatory requirements. However, this approach may increase the risk of non-compliance.

It is important to understand the fundamental purpose behind Australia's due diligence approach to addressing the harms from global illegal logging activities.

Due diligence is a vital risk management tool. It's about carefully assessing timber sources to ensure they meet legality standards, helping businesses avoid potential challenges related to legality, reputation and market access.

The importance of Due Diligence

• Risk Mitigation
  Superficial checks often fail to identify the concealment tactics used in illegal timber trafficking. Making rigorous due diligence essential to ensure compliance and prevent inadvertently sourcing illegally logged materials.
• Reputational Protection
  In addition to facing significant financial penalties, breaches can disrupt operations, harm relationships with suppliers and partners, and lead to loss of consumer trust and reduced market opportunities.
• Supply Chain Integrity
  Due diligence ensures transparency and accountability throughout the supply chain. Organisations are expected to engage deeply with supply chains, understand local contexts, and continuously monitor for evolving threats.
• International Bodies Support Risk-Based Enforcement
  The U.S. Customs and Border Protection (CBP) employs a multi-layered enforcement strategy to uncover illicit timber trade, emphasising that due diligence must be dynamic and intelligence-driven. The International Union of Forest Research Organizations (IUFRO) highlights that illegal logging is embedded in complex global systems. Addressing it requires multi-disciplinary analysis, including criminology and trade flow monitoring.

Rather than being seen as extra work, due diligence is a valuable practice that supports responsible sourcing and long-term business resilience. Recognising this perspective also helps when considering ways to streamline due diligence processes, ensuring that any adjustments continue to support the shared goal of sustainable and transparent supply chains.

Ultimately, due diligence is a shared responsibility and a key step in ensuring legal supply chains. It's about more than paperwork—it's about protecting Australian businesses and consumers from contributing to the harm that illegal logging causes. Due diligence helps businesses identify and support supply chains with strong timber legality practices, enhancing environmental protection and outcomes.

Help us spread the word! Please share our illegal logging subscription details with those you think would benefit.

Further information

• See the department's illegal logging website for information and resources
• Email the department's compliance branch
• Call the department during business hours (8.30 am to 5.30 pm) on 1800 657 313 or +61 2 6272 3933 outside Australia