The move has been welcomed by Hyne Timber, who have a mill in Tumbarumba, however the company says it is yet to receive any government support to help fund the haulage costs of these logs.

Deputy Premier John Barilaro announced last week that "at least" an extra 270,000 tonnes of timber will enter the domestic supply chain over the next three years to help meet increased local demand in the construction sector, and address supply challenges following the 2019/20 Black Summer bushfires.

He said the decision was also made with an aim of safeguarding timber processing jobs in regional NSW.

"Not only are we producing sustainable timber, keeping it on shore to build Australian homes, and putting NSW jobs first, we are also making a substantial contribution to carbon capture and storage in the timber frames of new homes," Mr Barilaro said.

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Hyne Timber's manager of strategic relations, Katie Fowden, said the move will help alleviate the country's timber shortages, especially in Tumbarumba, still feeling the impact of the recent bushfires.

She said the diverted logs are transported "huge distances" at present, with the additional haulage costs borne by Hyne.

"Despite our requests over the last 18 months and the community's Timber4Tumba campaign, neither the NSW nor the Commonwealth Government have yet provided any financial support for Hyne to freight these or any other logs from distant plantations," Ms Fowden said.

"We remain in discussion including support for potential transport efficiencies."

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