The Albanese Labor Government has announced a review into the Tasmanian Freight Equalisation Scheme (TFES) is now underway, delivering on a 2025 election commitment.

TFES financially supports Tasmanian freight, including the state’s world-class produce, and passengers to cross the Bass Strait.

The review will consider if TFES could better support local businesses, including farmers and producers, to compete in domestic and other markets.

It will also consider how the Bass Strait Passenger Vehicle Equalisation Scheme is reducing the cost of moving passenger vehicles across the Bass Strait.

The review will be carried out by newly appointed independent reviewers Dr David Parmeter and Dr Jenny Gordon.

It will also explore other issues raised by the 2024 Senate Select Committee inquiry into TFES.

Mr Parmeter is the former Chair of the Maritime Industry Australia Limited and the current Chair of the Australian Mariners’ Welfare Society.

Dr Gordon served previously as the Chief Economist at DFAT and currently serves on the Asian Development Bank Institute’s Advisory Council.

The Albanese Labor Government is committed to ensuring these critical schemes are fit-for-purpose and best serving Tasmanians, including reducing the red tape for efficient shipping.

Since July 2025, Tasmanian businesses have already been benefitting from a 25 per cent increase in assistance rates under the scheme – putting more money in their back pockets at a time it’s needed most.

A final review report and recommendations to the government are expected in the first half of 2026.

Further information on the schemes and the review, including the review terms of reference, is available at: www.infrastructure.gov.au/infrastructure-transport-vehicles/maritime/tasmanian-transport-schemes.

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

“We know how important these financial support schemes are, as Tasmanians don’t have the interstate road or rail options that their mainland counterparts do.

“A strong shipping industry means new jobs, supply chain security and economic diversity, which is why we are investing an additional $95 million in the TFES over the next two years.

“I look forward to seeing the outcomes of the review as we continue to support a stronger future for Tasmanians.”

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

“Tasmanian farmers and producers rightly deserve a level playing field which is why the Albanese Labor Government has acted.

“The commencement of this review delivers on the commitment we made before the election to Tasmania’s farmers and producers.

“Together with the $95 million we are investing to boost TFES, this review will help ensure a bright future for Tasmanian farmers and producers.”

Quotes attributable to the Assistant Minister for Regional Development, Anthony Chisholm:

“This scheme has been supporting Tasmanian industry for almost 50 years, and we want it to be fit for the future.

“Together with our $95 million investment over the next two years, this comprehensive review will ensure TFES continues to deliver for Tasmanian farmers and producers for years to come.”

Quotes attributable to Member for Lyons, Rebecca White:

"Keeping Tasmania connected across the Bass Strait is vital for our economy and our way of life. 

"This review is about making sure Tasmania's freight and passenger transport schemes are fit for purpose and delivering the best outcomes for our state. 

"We know how important affordable and reliable transport is for Tasmanian families and businesses. I encourage Tasmanian businesses to participate in the review to make sure that the recommendations to government help us strengthen TFES."

Quotes attributable to the Member for Braddon, Anne Urquhart:

“TFES is extremely important for the sustainability and continued operations of Tasmanian businesses.

“Being an island state with offshore islands who are entirely dependent on shipping, it’s important to have a robust fit for purpose scheme.

“I was pleased to have been the deputy chair of the committee that proposed the recommendations that the Albanese Labor Government committed to in the 2025 election and look forward to the outcome of this review.”

Quotes attributable to the Member for Bass, Jess Teesdale:

“Since July we’ve seen higher assistance rates, and this review is the next step. Let’s make sure the scheme reflects real freight costs and cuts red tape where it counts.
“This review is our chance to modernise the scheme so Tasmanian goods stay competitive across Bass Strait and beyond.”