A temporary increase in the Tasmanian Freight Equalisation Scheme should provide valuable relief to apple isle businesses, logistics figures say, albeit more action is required to overcome costs associated with shipping.
From 1 July 2025 until 30 June 2027, there will be a 25% increase in the rates of assistance.
During this period the following rates of assistance apply:
- variable rate, the maximum amount of assistance is $1068.75 per TEU
- flat rate, the amount of assistance is $875.00 per TEU.
The 25% increase also applies to less than container load shipments (LCLs).
Infrastructure minister Catherine King said the scheme would "ensure Tassie industries are just as competitive as their mainland partners and can export their products to the rest of the world".
"This additional $95 million investment will mean more Tassie timber building homes in Sydney, more fish on plates in Melbourne and more metals and resources crossing the Strait, without Tassie business being financially penalised by distance," Ms King said.
Federal agriculture minister Julie Collins said Tasmanian farmers and producers "deserve a level playing field and this investment will deliver that.?
"Together with the comprehensive review that we are undertaking into TFES, this investment will help ensure a bright future for Tasmanian farmers and producers," she said.
Brett Charlton, a prominent logistics figure and Freight and Trade Alliance representative, said while this temporary measure provided confidence, Tasmanians were "eagerly awaiting the comprehensive review with hopes that there are measures in place to ensure that the scheme is indexed to rising costs".
"The stevedore in Bell Bay recently implemented a vehicle booking system at additional cost to shippers with most transport companies raising rates between 4% and 6% on the back of Bass Strait carrier increases," Mr Charlton said.
"With these recent increases, most shippers will see a reduction on the impact of cost increases rather than real savings."
Mr Charlton said the planned move of domestic carriers from Melbourne's Webb Dock further up the Yarra was likely to come at a significant cost for Tasmanian shippers.
"While the temporary [TFES] increase is welcomed and the commitment from the federal government is applauded, Tasmanians are very well aware that there is a significantly larger picture to comprehend into the future," he said.
The TFES concept dates back to the Whitlam government albeit it took affect only after Sir John Kerr had done his handiwork.
It became a talking point during the recent federal election, with then opposition leader Peter Dutton also pledging assistance.
The federal government has also announced a review into the TFES to ensure its future relevance.
"This scheme has been supporting Tasmanian industry for almost 50 years, and we want it to be fit for the future," Ms King said.
"That's why this year, we will undertake a comprehensive review into the future of the scheme.