Joint media release: Increased support for Tasmanian freight begins

Minister for Infrastructure, Transport, Regional Development and Local Government, the Hon Catherine King MP
Minister for Agriculture, Fisheries and Forestry, the Hon Julie Collins MP

From today, Tasmanian businesses will benefit from a 25% increase to financial assistance as the Albanese Labor Government delivers on a key election commitment to boost the Tasmanian Freight Equalisation Scheme (TFES).

The scheme recognises Tasmania’s reliance on shipping across the Bass Strait, and supports Tasmanian shippers to move a range of non-bulk goods by sea, including those used in manufacturing, mining, agriculture, forestry, fishing and other significant local industries.

Tasmanian businesses will now get higher assistance rates from the Australian Government of up to $1,070 per TEU (Twenty-Foot Equivalent Unit, a standard-sized shipping container) under the scheme’s domestic component.

For goods being shipped from Tasmania to the world, and being transferred from one ship to another at mainland ports in the process, the flat rate of assistance will increase to $875 per TEU. The same rate will apply to international goods being imported to Tasmania via a mainland port.

TFES was introduced in 1976 by the Whitlam Government and was expanded to include the Bass Strait islands in 2008.

As the scheme nears the end of its fifth decade in operation, the Albanese Government has also committed to commissioning a comprehensive review of TFES to ensure it continues to support Tasmanian businesses into the future.

The review, which will be undertaken this year, will consider whether TFES remains fit-for-purpose and address other recommendations from last year’s Senate Select Committee inquiry.

Further information on the scheme is available at: www.infrastructure.gov.au/infrastructure-transport-vehicles/maritime/tasmanian-freight-equalisation-scheme

Quotes attributable to the Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King:

“We can’t build a bridge between Tasmania and the mainland, so this scheme is our way to ensure Tassie industries are just as competitive as their mainland partners and can export their products to the rest of the world.

“This additional $95 million investment will mean more Tassie timber building homes in Sydney, more fish on plates in Melbourne and more metals and resources crossing the Strait, without Tassie business being financially penalised by distance.

“This scheme has been supporting Tasmanian industry for almost 50 years, and we want it to be fit for the future. That’s why this year, we will undertake a comprehensive review into the future of the scheme.”

Quotes attributable to the Minister for Agriculture, Fisheries and Forestry Julie Collins:

“Tasmanian farmers and producers deserve a level playing field and this investment will deliver that.

“Together with the comprehensive review that we are undertaking into TFES, this investment will help ensure a bright future for Tasmanian farmers and producers.

“Our Government has already delivered $60 million to upgrade Hobart International Airport to boost freight out of our state and this investment builds on this commitment.

Quotes attributable to the Member for Braddon, Anne Urqhuart:

“The review of the TFES is very welcome. Tasmania, as an island state is unique where the transportation of goods is predominantly by sea and we want to ensure our businesses have the same opportunities to compete in other markets as does the rest of the country.

“This review will consider options to ease the freight cost disadvantage Tasmanian businesses face and explore other issues raised by the Senate Select Committee that I was deputy chair of.

“The review will also consider the role of the Bass Strait Passenger Vehicle Equalisation Scheme in reducing the cost of passenger vehicles being moved across Bass Strait in our iconic Spirits.”

Quotes attributable to the Member for Lyons, Rebecca White:

“Labor has always backed our local producers. The delivery of this commitment demonstrates how the Albanese Labor Government is working to support local jobs and industry.

“Tasmania’s industries and primary producers are critical to our state and this investment continues the work of building Tasmania’s future and delivering more support to our local industries.”  

Quotes attributable to the Member for Bass, Jess Teesdale:

“Labor introduced TFES, it expanded TFES to cover the Bass Strait Islands, and now, not only are we investing more in TFES but our review will ensure it’s fit for purpose for years to come.