The Australian Government has increased financial assistance for Tasmanian businesses by 25% through the Tasmanian Freight Equalisation Scheme (TFES), effective today.
There is also a review, to be undertaken this year, which will consider whether TFES remains fit-for- purpose and address other recommendations from last year’s Senate Select Committee inquiry.
Tammy Tyrell (independent Senator, Tasmania), said the changes don’t go far enough and are just the start of reforms needed to make the scheme fit for purpose.
The statements are reproduced below.
Media release – Catherine King, Minister for Infrastructure, Transport, Regional Development and Local Government and Anne Urquhart, the Member for Braddon, 1 July 2025
INCREASED SUPPORT FOR TASMANIAN FREIGHT BEGINS
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.
“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,
said Catherine King, Minister for Infrastructure, Transport, Regional Development and Local Government.
“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.”
Anne Urquhart, the Member for Braddon has welcomed the review of the TFES.
“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.”
Further information on the scheme is available at: www.infrastructure.gov.au/infrastructure- transport-vehicles/maritime/tasmanian-freight-equalisation-scheme.
Media release – Tammy Tyrrell, independent Senator for Tasmania, 1 July 2025
LABOR CELEBRATE BARE MINIMUM ON FREIGHT SCHEME
From today, Tassie businesses will receive increased subsidies under the Tasmanian Freight Equalisation Scheme (TFES).
Senator Tammy Tyrrell, Independent Senator for Tasmania, established and chaired a Senate Committee into TFES last year. Senator Tyrrell says she’s proud her work has secured an initial increase for businesses and farmers.
“My Senate Committee has led to the first pay increase for producers and businesses in years. This is what happens when an independent actually listens to what the community needs and takes action.”
However, Senator Tyrrell says this is just the start of reforms needed to make the scheme fit for purpose.
“Labor’s giving themselves a pat on the back for doing the bare minimum. They’ve promised a review we don’t need and they haven’t started yet.
“This is a broken scheme that’s sending Tasmania backwards. I’ve put forward changes to make the scheme faster, cheaper and easier to use. We need staff on the ground to help Tasmanians use this clunky scheme. Air freight should be included in the scheme and it should sit under one government department, not two.
“The Tasmanian State Parliament unanimously backed a motion supporting my suggested changes to the scheme. Maybe Federal Labor should listen to their Tasmanian counterparts.
“It’s time for real action on this freight scheme to help Tasmanians with the cost of living.”
Click here for more information about Senator Tyrrell’s suggested reforms to the scheme.
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