In a joint statement from Mr Turnbull and Tasmanian Premier Will Hodgman, they said the extension of the agreement would provide long-term job security for thousands of Tasmanian families.

The agreement between the Australian and Tasmanian governments was signed in 1997 and was designed to provide security for the state’s timber industry while still protecting the unique environment. 

It was due to expire this year, and has remained a controversial issue with a large number of environmental advocates opposing the original agreement.

The extended agreement will include rolling five-year extensions, which are subject to performance and review.

It is also set to focus on a more outcomes-focused review process and will see the inclusion of clauses on matters of national environmental significance.

“Threatened species and the rich wilderness of Tasmanian forests continue to be protected through a comprehensive system of reserves,” Mr Turnbull and Mr Hodgman said in their statement. 

“Tasmania’s forests have long been the lifeblood of the state, providing jobs and economic opportunities to thousands. 

“However, protecting the state’s unique environment has always been important to ensure that Tasmania’s forests can continue to be enjoyed by the community for generations to come.” 

More than 3600 Tasmanians are currently employed by the forestry industry.

The agreement applies to the management of both privately and publicly owned forests.