The Hon Catherine King MP
Minister for Infrastructure, Transport, Regional Development and Local Government

The Hon Julie Collins MP
Minister for Agriculture, Fisheries and Forestry

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