Yes millions of rabbits are killed annually for their fur after being bred on factory farms in Australia.
Older rabbits are the ones that are usually killed for their fur instead of younger rabbits though so the rabbits are bred and raised to be old enough by the rabbit factory farms.
Then they are slaughtered for their fur because the rabbit fur industry demands the thicker pelt of an older animal for a particular quality of the fur.
The younger rabbits that are usually raised for meat purposes only are to young for the fur and have unstable infant coats or have begun their subadult moult..
So younger rabbits are still killed but for meat only and the older rabbits are the ones that are usually killed mostly in Australia for their quality of fur to make clothing and other things.