Tasmanian Wheat Freight Scheme
History
The Tasmanian Wheat Freight Subsidy Scheme (TWFSS) was introduced in 1989 and was administered at the time by the Department of Agriculture, Fisheries and Forestry. Its introduction coincided with the deregulation of the Australian domestic wheat market and it replaced the Tasmanian Wheat Freight Levy (TWFL) which had been in place since 1959. The levy was a marketing arrangement to ensure that the administered price for wheat was the same for mainland Australian and Tasmanian users. It was financed by a levy on wheat sales, which was used to cover the freight costs to Tasmania.
Following a 2004-05 Budget decision to cease the Tasmanian Wheat Freight Subsidy Scheme (TWFSS) rebate for bulk wheat shipments and include containerised wheat under the Tasmanian Freight Equalisation Scheme (TFES), the Australian Government made the decision to reinstate a scheme for bulk shipments of wheat. The new scheme, the Tasmanian Wheat Freight Scheme (TWFS) came into effect from 1 July 2004.
The Government also transferred responsibility for administration of the new TWFS from the Minister for Agriculture, Fisheries and Forestry to the then Minister for Transport and Regional Services, (now the Minister for Infrastructure, Transport, Regional Development and Local Government), to ensure that all transport related assistance is administered from within one portfolio. Rebates for containerised shipments of wheat are paid through the Tasmanian Freight Equalisation Scheme and for bulk wheat through TWFS.
Purpose of the Scheme
The Tasmanian Wheat Freight Scheme (TWFS) provides a rebate to eligible shippers of bulk wheat on Bass Strait.
The objective is to assist in alleviating sea freight costs of shipping eligible bulk wheat on Bass Strait so that businesses in Tasmania relying on bulk wheat shipments are not unduly disadvantaged.
The scheme operates by making payments of assistance to eligible shippers who are responsible for paying the sea freight costs of eligible bulk wheat.
The Productivity Commission has conducted an Inquiry into Tasmanian Freight Subsidy Arrangements. The Commission's report was released on 24 May 2007. The Government's response was released on 21 June 2007.
Funding
The current level of funding available under the Tasmanian Wheat Freight Scheme is set at $1.05m.
The Rebate
Subject to an annual appropriation by the Federal Parliament, up to $1.05m is available in a financial year for distribution under the Scheme.
A shipper may be eligible for a subsidy, at the rate of up to $20.65 per tonne, in respect of the freight costs of a shipment of bulk wheat by sea from the mainland to Tasmania in a given financial year provided that in each case the amount paid to the eligible shipper does not exceed that eligible shipper's freight costs.
Administration
The Scheme operates under Ministerial Directions approved on 25 January 2006 [
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All claims for assistance for shipments of wheat landed in Tasmania on or after 1 July 2004 are assessed in accordance with the Ministerial Directions, and processed through Tasmanian Assistance Services, Centrelink, acting on behalf of the Department of the Department of Infrastructure, Transport, Regional Development and Local Government
Any outstanding claims for assistance for bulk wheat landed in Tasmania up to and including 30 June 2004 should be directed to Tasmanian Department of Primary Industry and Water www.dpiw.tas.gov.au
Further information
Requests for information on applying for the TWFS or Tasmanian Freight Equalisation Scheme 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: tas.support@centrelink.gov.au
Centrelink TWFS webpage: http://www.centrelink.gov.au/internet/internet.nsf/businesses/twfs.htm#more
More information is available on the Centrelink website.
Centrelink is the Australian Government's primary service delivery agency and undertakes the delivery of the Tasmanian Freight Equalisation Scheme, 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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