The federal Minister for Forestry, Senator Eric Abetz, has given his support to a continuation of federal tax breaks for the plantation timber industry.

There have been calls for an overhaul of the scheme, with critics suggesting that it is encouraging a non-viable industry to expand into areas of prime agricultural country and heightening risks to safety from chemical use.

However, Senator Abetz says the industry deserves continued government backing.

"That regime has seen the growth of the sector and has also meant that we have been able to disengage from harvesting old growth forests, so that's been a win-win situation, and it's vitally important if we want to see this ongoing investment in Australia," he said.