Industry stakeholders are being urged to have their say as the independent Tasmanian freight schemes review enters its next phase, seeking deeper feedback on issues raised during consultations held across Tasmania and Melbourne.
The review examines the operation of the Tasmanian Freight Equalisation Scheme and the Bass Strait Passenger Vehicle Equalisation Scheme, focusing on whether the programs continue to reduce freight disadvantage while supporting efficient, sustainable access to mainland markets.
Co-chairs David Parmeter and Dr Jenny Gordon have invited submissions responding to concerns raised during in-person consultations, including scheme rates, eligibility settings, administrative complexity and competition across Bass Strait shipping services. Feedback will inform the final report to government, due in 2026.
The renewed call for submissions follows extensive stakeholder engagement and builds on findings from the recent Senate Select Committee inquiry into the Tasmanian Freight Equalisation Scheme. That inquiry highlighted the critical role freight assistance plays for Tasmanian producers, particularly those with no alternative to sea transport.
Evidence to the Senate inquiry showed that while the scheme remains essential to Tasmania’s economy, assistance levels have not kept pace with rising shipping and intermodal costs. Data presented to the committee showed a growing proportion of claims reaching the maximum assistance threshold, a phenomenon described as “class slip,” reducing the scheme’s effectiveness over time.
The inquiry also identified concerns about administrative burden, particularly for small and medium-sized businesses. Some operators reported that the time and cost of lodging claims outweighed the financial benefit, leading eligible businesses to opt out of the scheme altogether.
Regional and island stakeholders raised additional challenges, including limited shipping competition, high intermodal costs and increasing reliance on air freight for time-sensitive or perishable goods. Councils representing King Island and the Furneaux Group argued that existing arrangements do not adequately reflect their freight realities.
Against this backdrop, the Tasmanian freight schemes review is seeking targeted feedback on how the schemes can be simplified, better aligned with current freight markets and more responsive to regional needs, while continuing to meet their original policy intent.
Submissions will also help shape potential reforms aimed at reducing red tape, improving transparency and ensuring assistance delivers genuine productivity and cost-of-living benefits for Tasmanian communities.
The review’s interim findings will feed into a final report to government in 2026, alongside recommendations on future scheme settings and governance.
Submissions close at 11:59 pm AEDT on January 30, 2026, with stakeholders encouraged to review the issues paper before lodging feedback through the Have Your Say portal.