TFES 25 per cent increase starts today

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

The increase was a Federal Labor election commitment earlier this year, after strong lobbying Fruit Growers Tasmania and the TCCI.

Tasmanian businesses and farmers 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.

The Albanese Government has also committed to commissioning a comprehensive review of TFES to ensure it continues to suport 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,” Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said.

“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.”

Member for Braddon, Anne Urquhart said 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,” Ms Urquhart said.

“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.”