Tasmanian Freight Equalisation Scheme extended

Media Release


12 November 2015

Joint release with:

Tasmanian Liberal Federal Team

Abetz, Bushby, Colbeck, Hutchinson, Nikolic, Parry, Whiteley

The Australian Government's decision to extend the Tasmanian Freight Equalisation Scheme (TFES) from 1 January 2016 will enable Tasmanian companies sending their goods to the mainland to make claims regardless of the goods' final destination.

Acting Prime Minister and Minister for Infrastructure and Regional Development Warren Truss released the new guidelines today, saying the decision is in line with the Government's response to the Productivity Commission Inquiry Report on Tasmanian Shipping and Freight, announced in March this year.

“With our fresh injection of $202.9 million, which extends the TFES to include shipments of goods via the mainland to markets not currently covered by the Scheme, we will level the playing field for more Tasmanian businesses,” Mr Truss said.

“The new Ministerial Directions I released today will facilitate the extension of the Scheme and implement administrative changes to improve its effectiveness and efficiency.”

Member for Bass Andrew Nikolic said that, with effect from 1 January 2016, Tasmanian companies shipping their goods via the mainland under the expanded component will be able to claim $700 per 20ft shipping container from the TFES.

“In recognition of their relatively greater shipping freight cost disadvantage and limited shipping service options, shippers from King Island and the Furneaux Group of islands in Bass Strait will be eligible for an additional 15 per cent loading,” Mr Nikolic said.

Federal Member for Lyons Eric Hutchinson said the extension of the Scheme will ensure that all Tasmanian goods incurring a sea freight disadvantage across Bass Strait receive equal treatment when they are shipped to the mainland. I am also particularly pleased that small but inequitable anomalies have been rectified.

“This will mean more growth and jobs for Tasmania,” Mr Hutchinson said.

Member for Braddon Brett Whiteley said the new Ministerial Directions were developed in consultation with key stakeholders, including the Tasmanian Government and the many Tasmanian businesses that will benefit from the expanded Scheme.

“To explain what the changes to the Scheme will mean, a series of public information sessions on the new Ministerial Directions will be held in Devonport, Launceston and Hobart later this month,” Mr Whiteley said.

The Deputy Prime Minister thanked the Federal Members for Bass, Braddon and Lyons and the Tasmanian Liberal Senate Team for their ongoing support for Tasmanian businesses and exporters.

“Eric, Brett, Andrew and the Tasmanian Liberal Senate Team have been tireless advocates for Tasmania and it is a tribute to all that we have been able to deliver this extra $202.9 million to support Tasmanian businesses to grow and prosper,” Mr Truss said.

For more information on the Tasmanian Freight Equalisation Scheme, visit: https://infrastructure.gov.au/transport/programs/maritime/tasmanian/