A review into the Tasmanian Freight Equalisation Scheme (TFES) by the Australian Government is now underway.
TFES financially supports Tasmanian freight, including the state’s world-class produce, and passengers to cross the Bass Strait.
The review will consider if the scheme 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.
Furthermore, the review will also explore other issues raised by the 2024 Senate Select Committee Inquiry into TFES.
Federal Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, is in favour of improving Tasmania’s freight transport network and the economic strength that would come with it.
“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,” she said.
“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.”
Additionally, Federal Member for Lyons, Rebecca White, stressed the importance of this scheme for the farming industry.
“Keeping Tasmania connected across the Bass Strait is vital for our economy and our way of life,” she said.
“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.”
Independent reviewers, Dr David Parmeter and Dr Jenny Gordon, have been appointed to carry out the review.
Parmeter is the former Chair of the Maritime Industry Australia Limited and the current Chair of the Australian Mariners’ Welfare Society.
Meanwhile, Gordon served previously as the Chief Economist at DFAT and currently serves on the Asian Development Bank Institute’s Advisory Council.
The Federal 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 reportedly been benefitting from a 25 per cent increase in assistance rates under the scheme.
A final review report and recommendations to the government are expected in the first half of 2026.
In other news, TopStart Trailers founder, Peter Bouzinelos, passed away earlier this year at the age of 75.
The post Federal Govt to review Tasmanian Freight Equalisation Scheme appeared first on Trailer Magazine.