It was signed by Australian Prime Minister, Julia Gillard, and Tasmania's Premier, Lara Giddings, on August 7, 2011.
The Agreement resulted from Round Table discussions in 2010 between the Tasmania’s forest industry and environmental movement, which sought to end more than 30 years of animosity between the parties.
The main driver of the talks was the decision of Tasmania’s largest private forestry company, Gunns Limited, to exit native forest harvesting and focus on developing its proposed plantation-based pulp mill at Bell Bay in the north of the State.
The TFIA provided a financial package of AUD 277 million to: The Agreement also established an Independent Verification Group to assess the conservation values and timber supply requirements from within the areas nominated by the environmental movement for additional forest reserves.
The Tasmanian Government was expected to introduce legislation to the State Parliament by 30 June 2012 to implement the final agreement.