Background - Tasmanian Freight Equalisation Scheme

• Purpose of the Scheme
• Eligibility for Assistance
• Administration
• Intrastate extension - King Island and Furneaux Group
• Further Information

Purpose of the Scheme

The Australian Government has provided financial assistance to shippers of freight between Tasmania and mainland Australia under the Tasmanian Freight Equalisation Scheme (TFES) since July 1976.

The scheme assists in alleviating the sea freight cost disadvantage incurred by the shippers of eligible non-bulk goods moved between Tasmania and the mainland by sea. Its objective is to provide Tasmanian industries with equal opportunities to compete in mainland markets, recognising that, unlike their mainland counterparts, Tasmanian shippers do not have the option of transporting goods interstate by road or rail.

The scheme is demand driven and uncapped (no upper limit to the total annual payment).

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Eligibility for Assistance

The scheme has a northbound and a southbound component. The northbound component applies to goods produced or manufactured in Tasmania for permanent use or sale on the mainland of Australia. The southbound component applies to eligible non-consumer raw materials, machinery and equipment for use as inputs to the mining, manufacturing, agricultural, fishing and forestry industries in Tasmania.

Certain cargoes are ineligible for assistance, including shipments of air cargo (except when a shipping service is not available during periods of industrial disputation, mechanical failure or vessel maintenance), cargoes intended for export, bulk cargoes and goods imported into mainland Australia from overseas which have not undergone a manufacturing process on the mainland before being shipped to Tasmania.

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Administration

The scheme is administered in accordance with Ministerial Directions issued by the Minister for Department of Infrastructure, Transport, Regional Development and Local Government. Eligibility requirements and rates of assistance are described in the Ministerial Directions.

TFES Ministerial Directions - July 2008 [PDF: 125 KB]

Guidelines on the TFES Ministerial Directions of July 2008 (MDs) are also available here:
[PDF: 1211 KB]

Intrastate extension - King Island and Furneaux Group

In line with its election commitment, from 1 July 2008 the Australian Government has extended the TFES to include intrastate sea freight shipped between King Island and the main island of Tasmania, and between Furneaux Group and the main island of Tasmania.

This is in addition to the assistance currently available to the communities of King Island and Furneaux Group under the existing interstate TFES.

The 2008-09 Budget provides $2.8 million over four years ($0.7 million per annum) for the TFES intrastate extension, in fulfilment of the Government's election commitment.

An overview of the arrangements is available: [PDF: 103 KB]

Further information

Requests for information on applying for TFES and other administrative matters should be directed to:

Tasmanian Assistance Services, Centrelink
GPO Box 1269
HOBART TAS 7001
FreeCALL No: 1800 993 347
Fax: (03) 6222 2149
Email: tfes.support@centrelink.gov.au
Website: www.centrelink.gov.au
(go to TFES from A-Z listing)

More information is available on the TFES webpage of the Centrelink website.

Centrelink is the Australian Government's primary service delivery agency and undertakes the delivery of the TFES, the Tasmanian Wheat Freight Scheme and the Bass Strait Passenger Vehicle Equalisation Scheme on behalf of the Department of Infrastructure, Transport, Regional Development and Local Government.

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