Tasmanian Freight Equalisation Scheme

The Tasmanian Freight Equalisation Scheme provides financial assistance for cost incurred by shippers of eligible non-bulk goods moved by sea between Tasmania and mainland Australia. The amount of assistance is based on the difference between the freight costs of moving the goods by sea and the notional freight costs of moving them by road over an equivalent distance. The objective of the Scheme is to provide Tasmanian industries with equal opportunities to compete in other markets, recognising that, unlike their mainland counterparts, Tasmanian shippers do not have the option of transporting goods interstate by road or rail.

Assistance is also available for eligible non-bulk goods shipped between the main island of Tasmania and either King Island or the islands of the Furneaux Group.

The Australian Government released its response to a Productivity Commission Inquiry Report on Tasmanian Shipping and Freight on 13 March 2015. The response included the expansion of the Tasmanian Freight Equalisation Scheme from 1 January 2016 to include goods going to markets not previously covered by the Scheme and that are transhipped through a mainland port. The expansion of the Scheme will provide an additional $202.9 million assistance to shippers over the four years from 2015-16 to 2018-19.

The details of the Scheme are contained in Ministerial Directions issued by the former Deputy Prime Minister on 12 November 2015. These Directions incorporate the measures required to implement the Government's response and address some administrative ambiguities and anomalies with the previous Directions.

Media Release

  • The current Ministerial Directions took effect from 1 January 2016 and were last varied on 20 April 2016 DOC: 325 KB PDF: 238 KB ReadSpeaker

    As of 23 December 2015, poppy straw—01931 is included in Schedule 1 of the TFES Ministerial Directions—Goods eligible for assistance under the northbound and intrastate components of the scheme PDF: 434 KB ReadSpeaker.

    On 20 April 2016 the Minister for Infrastructure and Transport approved a variation to the TFES Ministerial Directions under subclause 8.2.1 of the Directions. The variation related to subclause 1.7.1 in relation to transhipment matters PDF: 564 KB ReadSpeaker.

These Directions apply in relation to all shipments of goods occurring on or after 1 January 2016. The previous Ministerial Directions continue to apply in relation to goods shipped prior to 1 January 2016. However, all claims for shipments of goods occurring before 1 January 2016 must be lodged before 30 June 2016.

Information Papers

The first batch of Information Papers on critical elements of the Directions made under clause 8.3 of the Directions to commence from 1 January 2016 are provided below:

Print

Last Updated: 28 November, 2016