The effectiveness of the financial supports provided to Tasmanian businesses, farmers and producers by the Tasmanian Freight Equalisation Scheme is to be reviewed by the Federal Government.
The review, announced yesterday, will be led by Dr David Parmeter and Dr Jenny Gordon and will also investigate how the Bass Strait Passenger Vehicle Equalisation Scheme is reducing the cost of moving passenger vehicles across the Bass Strait.
It will also explore other issues raised by the 2024 Senate Select Committee inquiry into TFES.
Dr 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.
Tasmanian businesses have benefited from a 25 per cent increase in assistance rates since July 2025.
A final review report and recommendations to the government are expected in the first half of 2026.
Federal Minister for Infrastructure, Transport and Regional Development Catherine King says the government understands how important the financial schemes are to Tasmanians who don’t have the interstate road or rail options available to those on mainland Australia.
“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,” King says.
“I look forward to seeing the outcomes of the review as we continue to support a stronger future for Tasmanians.”
Member for Lyons, Rebecca White says maintaining the connection across Bass Strait was vital for the Tasmanian 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,” White says.
“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.”
To find out more about the TFES click here.