Labor will deliver $95 million boost to the Tasmanian Freight Equalisation Scheme

CATHERINE KING MP
MINISTER FOR INFRASTRUCTURE, TRANSPORT, REGIONAL DEVELOPMENT AND LOCAL GOVERNMENT

JULIE COLLINS MP
MINISTER FOR AGRICULTURE, FISHERIES AND FORESTRY
MINISTER FOR SMALL BUSINESS

ANNE URQUHART
LABOR CANDIDATE FOR BRADDON

REBECCA WHITE
LABOR CANDIDATE FOR LYONS

A re-elected Albanese Labor Government will increase assistance for the Tasmanian Freight Equalisation Scheme (TFES), providing an additional $95 million in a big win for Tasmanian farmers and producers.

The TFES scheme provides support to companies shipping eligible goods across the Bass Strait.

This is about making sure Tasmanians aren’t disadvantaged just because their goods arrive by sea.

Cheaper freight means better and fairer prices for Tasmanians.

It was first announced by the Whitlam Government to help level the playing field – or sea freight disadvantage - between mainland and Tasmanian businesses.

However last year’s Senate Inquiry into the scheme found the rate of reimbursement was stagnant and no longer conducive to the original policy intent of the scheme.

Today’s funding increase will address that for Tasmanian farmers and producers, by increasing rates of assistance by 25 per cent over the next two years. This means the maximum domestic rate of assistance increases to $1070 per TEU (Twenty-Foot Equivalent Unit).

The 25% increase covers north and southbound; imported and exported goods as well as intrastate aspects of the scheme.

Goods covered by the scheme include those used in critical businesses across Tasmania, such as manufacturing, mining, agriculture, forestry and fishing.

This will also fund an independent review to ensure TFES is fit-for-purpose and delivers for Tasmanians into the future, a key recommendation of last year’s Senate Select Committee inquiry.

The review, which would be undertaken this year, will consider the Committee’s further recommendations, including the Bass Strait Passenger Vehicle Equalisation Scheme, and how to modernise the system to ensure it best serves Tasmanians including reducing administrative burden for more efficient shipping.

Tasmania is the only state in Australia that is heavily dependent on interstate sea transport links.

This funding will be reflected in the 2025 PEFO.

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

“We’re backing Tasmanian communities and businesses by boosting the TFES payment by 25 per cent for the next two years – so they get a fair go.

“Unlike their mainland counterparts who can use road or rail, Tasmanian businesses rely on the sea. We’re providing support now and commissioning a review to modernise the system for the future.”

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

“This boost to TFES is a huge win for Tasmanian farmers and producers and will help support jobs and critical industries across our state.

“Labor will always back our state’s farmers and producers and today’s commitment is another example of that.

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

Quotes attributable to Labor Candidate for Braddon, Anne Urquhart:

“As Deputy Chair of the recent Senate Inquiry into the TFES, I heard compelling evidence that the scheme is not fit for purpose.

“I welcome the announcement of a comprehensive review as outlined in the recommendations, and it is very pleasing that interim relief will be available through a $95 million package over the next two years.

“Unlike the rest of Australia, Tasmania’s national highway is a sea journey, so it’s critical that we have an appropriate scheme in place to support our industries and communities. Only Labor can be relied on to deliver that.”

Quotes attributable to Labor Candidate for Lyons, Rebecca White:

“Labor will always back our local producers, and this commitment is further demonstration of how we will work to support local jobs and industry.”

“Our industries and primary producers are critical for Tasmania, and it’s important our businesses can trade fairly with other states without being disadvantaged by getting across Bass Strait.

“This investment by the Albanese Labor Government is all about building Tasmania’s future and supporting our local industries.”

WEDNESDAY, 2 APRIL 2025