UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington D. C. 20549

                                   FORM 10-QSB

                   QUARTERLY REPORT UNDER SECTION 13 or 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2005

                         Commission file number 0-25909

                          Australian Forest Industries
        (Exact name of small business issuer as specified in its charter)

               Nevada                                    86-0931332
     (State or other jurisdiction of                  (I.R.S. Employer
      incorporation or organization)                 Identification No.)

                  4/95 Salmon Street, Port Melbourne, Victoria
                                 Australia, 3207
               (Address of principal executive offices) (Zip Code)

                  Issuer's telephone number: 011 61 3 8645 4340

Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.

                                                                   Yes |X| No|_|

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.

The number of shares of the issuer's outstanding common stock, which is the only
class of its common equity, on August 25, 2005 was 257,400,680.

<PAGE>

ITEM 1 FINANCIAL STATEMENTS

Description                                                                 Page
                                                                            No.
FINANCIAL INFORMATION:

Financial Statements

Consolidated Balance Sheets at June 30, 2005 (Unaudited)..................... 1

Consolidated Statement of Operations (Unaudited)............................. 2

Consolidated Statements of Cash Flows (Unaudited) ........................... 3

Notes to Consolidated Financial Statements (Unaudited)....................... 4

<PAGE>

ITEM 1.  FINANCIAL STATEMENTS

                          AUSTRALIAN FOREST INDUSTRIES
                    (Formerly Multi-Tech International Corp.)

                      UNAUDITED CONSOLIDATED BALANCE SHEETS

                                     ASSETS

<TABLE>
<CAPTION>
                                                                                June 30,      December 31,
                                                                                  2005            2004
                                                                              ------------    ------------
<S>                                                                           <C>             <C>
CURRENT ASSETS
   Cash                                                                       $    101,130
   Accounts receivable                                                           2,185,991    $  1,611,756
   Inventory                                                                     2,180,927       1,983,039
   Prepaid expenses and other                                                       10,373         141,609
                                                                              ------------    ------------
     Total Current Assets                                                        4,478,421       3,736,404
PROPERTY, PLANT AND EQUIPMENT, net of accumulated
   depreciation of $3,094,226 and  $2,721,972 in 2005 and 2004 respectively     11,286,320       9,712,015

OTHER ASSETS
   Receivable from related party                                                   377,462         500,496
   Long-term timber supply contract, net of amortization of $36,943                831,705         849,705
                                                                              ------------    ------------
          Total Assets                                                        $ 16,973,908    $ 14,798,620
                                                                              ============    ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Bank overdraft                                                                             $    421,097
   Accounts payable                                                           $  4,236,945       3,154,429
   Current portion of capitalized lease obligations                              1,069,681         731,217
   Accrued payroll, related taxes and benefits                                     543,893         542,414
                                                                              ------------    ------------
     Total Current Liabilities                                                   5,850,519       4,849,157

CAPITALIZED LEASE OBLIGATIONS                                                    4,093,099       2,797,975

STOCKHOLDERS' EQUITY
   Preferred stock, par value $0.001, 5,000,000 shares
     authorized, none issued and outstanding
   Common stock, par value $0.001, 300,000,000 shares
     authorized, 257,400,680 issued and outstanding                                257,400         257,400
   Additional paid-in capital                                                    9,810,817       9,810,817

   Comprehensive income                                                            282,088          42,210
   Accumulated deficit                                                          (3,320,015)     (2,958,939)
                                                                              ------------    ------------
          Total Stockholders' Equity                                             7,030,290       7,151,488
                                                                              ------------    ------------
          Total Liabilities and Stockholders' Equity                          $ 16,973,908    $ 14,798,620
                                                                              ============    ============
</TABLE>

                 See accompanying notes to financial statements


                                       3
<PAGE>

                          AUSTRALIAN FOREST INDUSTRIES
                    (Formerly Multi-Tech International Corp.)

                 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                           For the Three Months Ended         For the Six Months Ended
                                                     June 30,                        June 30,
                                         ------------------------------    ------------------------------
                                              2005             2004             2005             2004
                                         -------------    -------------    -------------    -------------
<S>                                      <C>              <C>              <C>              <C>
REVENUE - SALES                          $   3,439,748    $   2,434,709    $   6,746,314    $   6,565,354

COSTS AND EXPENSES
   Cost of goods sold                          822,929           51,564        3,859,151        3,117,676
   Selling, general and administrative       2,803,685        2,172,488        3,860,949        3,173,131
   Management fees                             350,000          357,064          357,064
   Interest expense                            105,894           (2,472)         180,057           98,633
   Depreciation and amortization               173,495          109,683          372,254          319,633
                                         -------------    -------------    -------------    -------------
          Total Costs and Expenses           4,256,003        2,688,327        8,272,411        7,066,137
                                         -------------    -------------    -------------    -------------

OPERATING LOSS                                (816,255)        (253,618)      (1,526,097)        (500,783)

OTHER INCOME                                 1,165,021                         1,165,021
                                         -------------    -------------    -------------    -------------

NET INCOME (LOSS)                        $     348,766    $    (253,618)   $    (361,076)   $    (500,783)
                                         =============    =============    =============    =============

NET LOSS PER  SHARE                      $        0.01    $        0.01    $       (0.01)   $        0.01
                                         =============    =============    =============    =============

WEIGHTED AVERAGE SHARES
   OUTSTANDING                             257,400,680      257,400,680      257,400,680      257,400,680
                                         =============    =============    =============    =============
</TABLE>

                 See accompanying notes to financial statements.


                                       4
<PAGE>

                          AUSTRALIAN FOREST INDUSTRIES
                    (Formerly Multi-Tech International Corp.)

                 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                 For the Six Months Ended
                                                                         June 30,
                                                                --------------------------
                                                                   2005           2004
                                                                -----------    -----------
<S>                                                             <C>            <C>
CASH FLOW FROM OPERATING ACTIVITIES
   Receipts from customers                                      $(6,277,164)   $ 6,554,523
   Payments to suppliers and employees                            6,980,750     (6,759,784)
   Other income                                                     447,450
                                                                -----------    -----------

          Net Cash (Used in) Provided by Operating Activities      (703,586)       242,189
                                                                -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES
   Payment for property, plant, and equipment                    (5,005,438)    (1,865,160)
   Proceeds from sale of property, plant, and equipments          3,485,318      1,577,961
                                                                -----------    -----------
          Net Cash Used in Investing Activities                  (1,520,120)      (287,199)

CASH FLOWS FROM FINANCING ACTIVITIES
   Net proceeds from borrowings/capitalized leases                1,746,819      1,555,934
   Long term timber supply contract                                (231,695)
   Loans to related parties                                         997,575     (1,201,561)
                                                                -----------    -----------
          Net Cash Proved by Financing Activities                 2,744,394        122,678

NET DECREASE IN CASH                                                520,688         77,668
EFFECT OF EXCHANGE RATES ON CASH                                      1,539
CASH AT BEGINNING OF YEAR                                          (421,097)       599,290
                                                                -----------    -----------

CASH AT END OF YEAR                                             $   101,130    $   676,958
                                                                ===========    ===========
</TABLE>

                 See accompanying notes to financialstatements.


                                       5
<PAGE>

                          AUSTRALIAN FOREST INDUSTRIES
                    (Formerly Multi-Tech International Corp.)

                NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

      The accompanying condensed consolidated financial statements have been
      prepared in accordance with generally accepted accounting principles for
      interim financial information. Accordingly, they do not include all of the
      information and footnotes required by generally accepted accounting
      principles for complete financial statements. In the opinion of
      management, all adjustments (consisting of normal recurring accruals)
      considered necessary in order to make the financial statements not
      misleading have been included. Results for the three and six months ended
      June 30, 2005 are not necessarily indicative of the results that may be
      expected for the year ending December 31, 2005. For further information,
      refer to the financial statements and footnotes thereto included in
      Australian Forest Industries' annual report on Form 10-KSB for the year
      ended December 31, 2004.


                                       6
<PAGE>

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS

It should be noted that this Management's Discussion and Analysis of Financial
Condition and Results of Operations may contain "forward-looking statements."
The terms "believe," "anticipate," "intend," "goal," "expect," and similar
expressions may identify forward-looking statements. These forward-looking
statements represent the Company's current expectations or beliefs concerning
future events. The matters covered by these statements are subject to certain
risks and uncertainties that could cause actual results to differ materially
from those set forth in the forward-looking statements, including the Company's
dependence on weather-related factors, introduction and customer acceptance of
new products, the impact of competition and price erosion, as well as supply and
manufacturing restraints and other risks and uncertainties. The foregoing list
should not be construed as exhaustive, and the Company disclaims any obligation
subsequently to revise any forward-looking statements to reflect events or
circumstances after the date of such statements, or to reflect the occurrence of
anticipated or unanticipated events. In light of the significant uncertainties
inherent in the forward-looking information included herein, the inclusion of
such information should not be regarded as a representation that the strategy,
objectives or other plans of the Company will be achieved. The Company wishes to
caution readers not to place undue reliance on any such forward-looking
statements, which speak only as of the date made.

RESULTS OF OPERATIONS

We are currently in the second year of operations and have generated significant
revenues to date. Our activities from inception to date were related to our
formation, preparation of our business model, arranging and planning financing
and the acquiring all rights, title and interest to our timber rights located in
the Canberra region in addition to the implementation and construction of our
first sawmill also in the Canberra region.

Operating costs for the six-month period ended June 30, 2005 aggregated
$8,272,411 as compared to $7,066,137 for the corresponding period in 2004. This
includes a decrease in management fees of $357,064 which were a result of
management's decisions to reduce costs for the period ending June 30, 2005. This
also includes an increase in cost of goods sold and selling, general and
administrative expenses of $1,429,293 from the corresponding period in 2004
which was result of the continuing development of our business plan and
increasing of our sales efforts. In the six-month period ended June 30, 2005 we
realized a net loss of $(361,076) as compared to net income of $7,495,849 for
the corresponding six-month period ending in 2004. The reduction in income from
2004 to 2005 was due to our other income being $6,831,611. Our net loss per
share was $(0.01) for both periods in 2005 and 2004.

LIQUIDITY AND CAPITAL RESOURCES

On June 30, 2004 and 2005 we had current assets of $4,478,421.

Net cash used in operating activities for the six months ending June 30, 2005
was $(703,586) as compared to $242,189 for the six months ending June 30, 2004.
The decrease in net cash was a result of other income for the period in 2005 as
compared to other income of $447,450.

In the six months ending June 30, 2005, the Company experienced an increase in
net cash provided by financing activities of $2,744,394 as a result of the
reduction of payments related to a long term timber supply contract in the
amount of $231,695 as well as the repayment of loans to related parties of
$997,575.

The Company is presently completing a second sawmill in Canberra which is
anticipated to be operational in the third quarter of 2005 and which will be
used primarily for processing the logs resulting from the Bombala Agreement
which was entered into in 2004.


                                       7
<PAGE>

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires the appropriate
application of certain accounting policies, many of which require estimates and
assumptions about future events and their impact on amounts reported in the
financial statements and related notes. Since future events and their impact
cannot be determined with certainty, the actual results will inevitably differ
from our estimates.

Management believes application of accounting policies, and the estimates
inherently required by the policies, are reasonable. These accounting policies
and estimates are constantly re-evaluated, and adjustments are made when facts
and circumstances dictate a change. Historically, management has found the
application of accounting policies to be appropriate, and actual results
generally do not differ materially from those determined using necessary
estimates.

Item 3. Controls and Procedures.

      (a) Our principal executive officer and principal financial officer have
each evaluated the effectiveness of our disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) as of a date within 90 days
prior to the filing date of this quarterly report and have each concluded that
our disclosure controls and procedures are adequate.

      (b) There were no significant changes in our internal controls or in other
factors that could significantly affect these controls subsequent to the date of
their evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

      (c) Not applicable


                                       8
<PAGE>

                                     PART II
Item 1. Legal Proceedings
None.

Item 2. Changes in Securities
None

Item 3. Defaults Upon Senior Securities
None

Item 4. Submission of Matters to a Vote of Security Holders
None

Item 5. Other Information
None

Item 6. Exhibits and Reports on Form 8-K

a. Exhibit Index

Exhibit 31.1 Certification of Chief Executive Officer

Exhibit 31.2 Certification of Chief Financial Officer

Exhibit 32.1 Certification of Chief Executive Officer

Exhibit 32.1 Certification of Chief Financial Officer

b. Reports on Form 8-K

None.

                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

AUSTRALIAN FOREST INDUSTRIES

/s/ Michael Timms
-------------------------------
Name:  Michael Timms
Title: CEO, President and Chairman of the Board
Date:  September 14, 2005

/s/ Colin Baird
--------------------------------
Name:  Colin Baird
Title: Chief Financial Officer
Date:  September 14, 2005


                                       9