| Publication date: 16 October 2025 Join the department's Live Information Sessions We invite you to attend live information sessions reflecting on the implementation of our illegal logging reforms. The sessions will provide an overview of the legislative, share key insights and answer your questions to support ongoing compliance. You can join the sessions via the link below: In the meantime, in this edition, we aim to shed light on some common misconceptions surrounding our illegal logging laws. By addressing these misunderstandings, we hope to strengthen awareness and commitment to achieving the objectives of the laws—protecting the Australian timber market from illegally logged timber now and into the future. Myths and misconceptions MYTH #1 'Recent reforms introduced new due diligence requirements'
TRUTH: Due diligence requirements under Australia's illegal logging laws have been in place since the introduction of the Illegal Logging Prohibition Act 2012 (the Act). The new Illegal Logging Prohibition Rules 2024 (the Rules) introduced changes to streamline the due diligence process while maintaining the integrity of the laws. The fundamental due diligence steps—information gathering, risk assessment, risk mitigation, and record keeping—remain consistent with the original legislation.
MYTH #2 'Regulated entities can carry out alternative activities to manage illegal logging risks, which can serve as a substitute for the due diligence obligations that are set out in the Act and Rules'
TRUTH: While the department welcomes industry initiatives to combat illegal logging, alternative activities (such as independent timber testing or annual supply chain investigation) cannot, in isolation, replace the mandatory due diligence requirements that are set out in the Act and the Rules. These laws are designed to ensure that all regulated entities undertake a structured and verifiable assessment of the timber product or the raw log to reduce the risk that illegally logged timber is imported or processed. Informal, alternative or substitute measures do not satisfy this legal obligation, however, can be used to complement it.
MYTH #3 'Due diligence only needs to be done once or can be applied generally across shipments or a supplier'
TRUTH: Due diligence is specific to each shipment, delivery, or consignment. Importers and processors must assess the risk of illegally logged timber for each instance of importation/processing. The new repeat import/processing exception introduced in the Rules may apply if all circumstances are identical and there's clear evidence that no relevant changes have occurred within 12 months. Importantly, the exception process, if applicable, applies only to the risk assessment and risk mitigation processes. It does not provide an exception to the information gathering obligations or to the process required to determine that the timber product or raw log is certified.
MYTH #4 'The legislation applies to importers only'
TRUTH: The legislation applies equally to importers and domestic processors. Both are individually referenced and have the same due diligence obligations under Australia's illegal logging laws.
MYTH #5 'Importers and processors had 6 months from 3 March 2025 to develop a due diligence system and process that complied with the Rules'
TRUTH: The amendments to legislation came into effect on 3 March 2025, with the Rules available on the Federal Register of Legislation from 2 January 2025. There were no provisions that allowed reliance on the previous Illegal Logging Prohibition Regulation 2012 after 3 March 2025. While the department provided guidance to support compliance with the reformed laws, importers and processors of regulated timber products were required to have updated processes in place to be compliant with reformed laws from 3 March 2025.
MYTH #6 'The department isn't using any framework to select companies to assess'
TRUTH: The department conducts compliance activities in line with its published practices, including frameworks for activity prioritisation. These allow for a risk-based and flexible approach to determining which regulated entities are assessed.
MYTH #7 'The department is trying to shut businesses down that don't comply with the laws'
TRUTH: The department's Compliance Posture is publicly available and emphasises a proportionate, risk-based approach. Where non-compliance is identified, enforcement decisions are made by a separate team from the compliance assessors, and responses vary depending on the specific circumstances. Serious offences like fraud or intentional deception are treated accordingly and may be referred under the Crimes Act 1914.Where a sanction or penalty for non-compliance applies, it is applied in accordance with the offences or civil penalty provisions that are legislated within the Act.
Regulated entities who are subject to action following non-compliance activities have review and appeal rights.
MYTH #8 'Our risk assessment outcome must be one that the department agrees with'
TRUTH: The department assesses whether the importer or processor has complied with their obligations, including gathering and assessing each required element of information. The outcome of the risk assessment is only evaluated for whether it was reasonable, based on the full facts and circumstances for that import or processing of raw logs — not whether the risk outcome was 'right' or 'wrong'.
MYTH #9 'Due diligence records must be kept from the date the importer or processor ordered the material'
TRUTH: Records must be kept for five years beginning from the date of import (for importers) or processing (for domestic processors).
MYTH #10 'It's acceptable to do due diligence after receiving a Requirement to Give Information or Documents Notice'
TRUTH: Due diligence, including risk assessments, must be completed before import or processing. Retrospective risk assessments conducted only after receiving a Requirement to Give Information or Documents Notice do not satisfy legal obligations under the illegal logging laws. Submitting retrospectively undertaken due diligence records as compliance with the illegal logging laws may be treated as false or misleading information or documents and potentially fraud.
MYTH #11 'A supplier declaration and accompanying documents are sufficient to fulfill due diligence obligations'
TRUTH: While supplier declarations and supporting documents may provide necessary information, they alone do not satisfy the full due diligence process. Due diligence involves four key stages: information gathering, risk assessment, risk mitigation (if applicable), and record keeping. Obtaining information is only the first step—importers and processors must also assess risks, implement mitigation measures if needed and make informed decisions based on that assessment.
MYTH #12 'I use an Australian based agent to organise the logistics and sourcing of my timber products from overseas. Because my agent is managing the ordering and shipping into Australia on my behalf, I am not the importer, my agent is the importer'
TRUTH: Under the Australia's illegal logging laws, an importer is someone involved in importing timber products regulated under the Act into Australia. While agents, brokers or even suppliers may manage the shipping and logistics of timber products from overseas, the person ordering timber products from overseas through an agent is engaged in an act of 'import' and is subject to the Act's obligations and offences.
MYTH #13 'Due diligence obligations can be completed after the goods arrive at an Australian port'
TRUTH: Due diligence must be completed before import — meaning before the ship arrives at port or the aircraft lands in Australia, where the goods are intended for use in Australia.
MYTH #14 'It is acceptable to use a due diligence checklist of 'yes' or 'no' answers as my identification and assessment of risk'
TRUTH: All required elements of due diligence must be supported by evidence. Simply declaring or indicating that an action has occurred is not adequate. A risk assessment must be a written record that identifies and assesses risks, demonstrating that all prescribed risk factors prescribed for that risk process have been reasonably considered.
MYTH #15 'I have verified that my supplier has the same supply chain, using the same species and harvest location of timber inputs. I can rely on that for future imports or processing'
TRUTH: Each import or processing event is unique, and information must be obtained for every instance. Gathering information once, annually or at any other periodic interval does not satisfy the legal obligations.
MYTH #16 'If my timber product is made up of six species harvested from four countries, I need to undertake six risk assessments to cover the timber species and an additional four risk assessments to cover the harvest countries'
TRUTH: You do not need multiple risk assessments. A single risk assessment covering all relevant facts and circumstances of the timber product is sufficient.
MYTH #17 'As an FSC/PEFC certificate holder the certification body's Chain of Custody manual is sufficient as a due diligence process'
TRUTH: Reliance upon a FSC or PEFC Chain of Custody manual is not sufficient to meet the due diligence obligations of Australia's illegal logging laws. While the manual may assist and establish some elements necessary for due diligence, the due diligence obligations of the Rules are distinct from the function of the Chain of Custody manual. 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
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