Fast-tracking the end of native logging in Victoria will devastate regional businesses and communities, the timber industry says.
Commercial harvesting of native timber will end on January 1, six years earlier than the Victorian government's original timeline.
Treasurer Tim Pallas cited recent court decisions and sustained risk of litigation as reasons for the change as he laid out a $200 million support plan in Tuesday's budget.
Environment groups have welcomed the decision, with the Biodiversity Council saying it was good for forests, threatened species, the climate and economy.
Activist groups have notched it as a win for people power.
But the CFMEU has criticised the government's lack of consultation, saying the industry was not able to provide any input.
"That's just common sense," the union's manufacturing division national secretary Michael O'Connor said.
"To make a decision without any consultation you maximise the chances that the impact on people is going to be worse."
The Victorian Forest Products Association also warned the government's early exit will lead to devastation in the regions.
"It prioritises budget interests over people's livelihoods," chief executive Deb Kerr said.
The government has allocated $50 million in 2023/24 for timber harvesting transition support, with a further $50m set aside each financial year until June 2027.
It also allocated $7.5m in 2023/24 for what it called timber worker and industry support, with another $7.5m in the following financial year.
About 900 workers will be directly affected by the changes, including 366 sawmill workers.
Up to 560 will be supported into new employment in other industries such as land management, bushfire response and renewable energy, Mr Pallas said.
Workers and families will also receive financial and mental health support.
Logging activity has been hamstrung in recent months following legal action against state-owned forestry company VicForests for failing to protect endangered possums.
VicForests noted the government's decision, saying it was pleased the government wanted to retain the skills and capabilities of its foresters and contractors.
Victorian Forest Products Association chief executive Deb Kerr said the government has rejected a sustainable material available within the state.
"We will now have to depend on imports, whether sourced from interstate or overseas, to produce the hardwood products loved by Victorians," she said.
