Federal Agriculture Minister Bridget McKenzie has said she would be "incredibly disappointed" if NSW followed Victoria's lead and banned native timber logging.
Victoria Premier Daniel Andrews has announced his state's native timber harvesting would be "phased down" before ending completely in 2030 to protect forests and prevent a rapid collapse of the industry.
In response to questions about whether a similar policy in NSW would harm the timber industry in the South West Slopes region, Senator McKenzie said governments needed to back "sustainable management".
"I am absolutely appalled as a Victorian Senator and as a daughter of logger who grew up in a timber town, that our state government under Daniel Andrews, seeking to win votes (in inner Melbourne) has sought to shut down a sustainable native hardwood forestry system."
Senator McKenzie said the "entire country suffers" if people outside major cities "are not producing food, are not fishing and are not harvesting".
"I would be incredibly disappointed if NSW chose to follow such a poor example of leadership as shown by the Daniel Andrews Government."
According to a federal Bureau of Rural Sciences report, logging around Tumut and the South West Slopes was mainly on softwood plantations but did include "a small proportion of native forest timber".
Riverina MP Michael McCormack said the Victorian Government's decision was "just madness" and regional areas need to be able to "get ahead" and "use their produce and harvest their trees".
"I think if (Mr) Andrews scratches the surface of his Labor caucus, there will be a lot of opposition to what he has just done," he said.