The Queensland State Government provides incentives for landholders to establish hardwood plantations on former pasture and cropping areas; however the long-term viability of the timber plantation program in medium to low rainfall areas remains questionable. In order to make hardwood plantations viable, some value adding is necessary. Thus, several trials including silvipastoral systems have been undertaken. This paper assesses both the successes of the trials and the additional benefits resulting from grazing in spotted gum (Corymbia citriodora subspecies variegata) plantations at Taabinga, southeast Queensland. The results show that at the optimal harvesting age of 31 years, the cumulative net present value from pasture alone would be A$779/ha. Therefore, there is considerable opportunity for increasing financial returns through the inclusion of pasture within plantations without reducing the rotation age of plantations. This silvipasture system will also offer other benefits such as improvements in soil conservation, soil and biomass carbon sequestration and biodiversity.