Bunnings will no longer stock timber from VicForests after the Federal Court last month ruled it was in breach of conservation laws.
Home and hardware giant Bunnings will no longer stock timber logged by Victorian government owned agency VicForests.
The Federal Court in May found VicForests failed to comply with a regional forest agreement which breached national environment laws.
"Bunnings has a zero-tolerance approach to illegally logged timber that dates back two decades and our commitment is to only source timber products from legal and well managed forest operations," Bunnings director of merchandise Phil Bishop said in a statement on Wednesday.
The state-run logging agency failed to avoid serious or irreversible damage in areas where critically endangered possums and gliders were found in the central highlands.
Mr Bishop said Bunnings would no longer source timber from VicForests or accept any raw material input into its supply chain as of June 30.
"Ultimately, we believe that customers and team members have the right to expect that the timber they purchase is sourced from responsible and lawful forestry operations," the Bunnings statement read.
National Campaigns Director for environmental group Wilderness Society Amelia Young said the decision by the retailer was an important step.
"Illegally logged timber has no place on Australian hardware shelves - or in Australians' homes or businesses," Ms Young said.
"It's time the native forest logging sector cleaned up its act. The recent Federal Court ruling was a wake-up call and Bunnings' decision is a clear signal that illegally logged timber won't be tolerated."
When the Federal Court decision was handed down VicForests said it would carefully consider the implications on its harvesting program.