Funding boost for Tasmanian Freight Equalisation Scheme imminent

Additional funding for the Tasmanian Freight Equalisation Scheme (TFES) will begin from the next financial year.

The scheme has been under intense scrutiny, with many calling it outdated and unfit for purpose.

The TFES provides freight assistance to eligible businesses that transport eligible goods by sea across Bass Strait.

The scheme was the subject of a Senate inquiry, chaired by Tasmanian Independent Senator Tammy Tyrrell, which recommended that the Australian government conduct a comprehensive review of the TFES.

The review is expected to take place this year.

As part of an election promise, Labor pledged to increase the scheme's funding by an additional $95m.

The additional funding will begin from the 2025–26 financial year and increase assistance rates by 25 per cent.

This will increase the maximum domestic freight support to $1070 per twenty-foot equivalent unit.

Speaking to KIRTV, newly elected Federal Labor Member for Braddon Anne Urquhart reaffirmed the $95m boost for the TFES.

“We are absolutely dedicated to pushing on with freight reform. I know how critical this is for King Island,” Ms Urquhart said.

“The TFES review will be one of the things I’ll be pushing hard for with the Infrastructure Minister.”