More incentive for new forestry areas with government change on carbon credits for new plantings

The federal government is allowing carbon credits to be accessed for new groves in areas which receive rainfall of 600 millimetres or above.

That hurdle meant areas deemed suitable for plantations across the South West Slopes of NSW and North East Victoria were unable to tap into the federal fund.

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South West Slopes Forestry Hub executive officer Phil Clements welcomed the move which will allow growers to receive a payment for the carbon they're sequestering through plantings.

The benefit will not apply to existing commercial stands, many of which were hit by summer bushfires.

However, Mr Clements said it would encourage farmers to set up a plantation on their property or sell land to a forest grower.

Before the fires, it was estimated an extra 30,000 hectares of trees were needed in Australia to meet a timber shortage.