Tasmanian Freight Equalisation Scheme

Read more about the changes announced 11 May 2021 on assistance for eligible imported goods under the Tasmanian Freight Equalisation Scheme.

On this page you will find information about the Tasmanian Freight Equalisation Scheme (TFES) including:

Overview

TFES provides financial assistance for cost incurred by shippers of eligible non-bulk goods moved by sea across the Bass Strait. The amount of assistance is based on the difference between the freight costs of moving the goods by sea and the notional freight costs of moving them by road over an equivalent distance. The objective of TFES is to provide Tasmanian industries with equal opportunities to compete in other markets, recognising that, unlike their mainland counterparts, Tasmanian shippers do not have the option of transporting goods interstate by road or rail.

Assistance is also available for eligible non-bulk goods shipped between the main island of Tasmania and either King Island or the islands of the Furneaux Group and for eligible non-bulk goods shipped across the Bass Strait for the purposes of transhipment through an Australian mainland port.

On 11 May 2021, the Australian Government announced the TFES was being extended to eligible imported goods, which are shipped to Tasmania via a mainland port and where there is no Australian equivalent good. You will be able to lodge your TFES claim online from 1 October 2021 onwards, for eligible imported goods shipped from the mainland to Tasmania on or after 1 July 2021.

Services Australia (formerly the Department of Human Services) undertakes delivery of TFES and the Bass Strait Passenger Vehicle Equalisation Scheme on behalf of the Department of Infrastructure, Transport, Regional Development and Communications (Infrastructure). Information on eligibility for assistance and how to submit a claim is available on the Services Australia website.

Ministerial Directions

The TFES operates under Ministerial Directions (MDs) which apply to all shipments of goods occurring on or after 1 January 2016. The MDs outline the eligibility requirements and rates of assistance. The current MDs were last varied on 3 June 2021.

ReadSpeaker. Previous variations to the MDs are outlined in the following table.

Variations to the TFES MDs

Date Variation information Variation instrument
3 June 2021 Amendments relating to the eligibility of imported goods which are shipped to Tasmania via a mainland port and where there is no Australian equivalent good, and other minor updates. Amendments relating to the eligibility of imported goods PDF: 261 KB

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24 December 2020 Minor amendments to the Secretary's authorisations under the Scheme, and other minor corrections and updates to improve clarity and accuracy of the provisions. Minor amendments to the Secretary's authorisations under the Scheme PDF: 336 KB

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5 February 2020 Fodder being donated for bushfire relief, until the end of 30 June 2021—01933 was included in Schedule 1, this is taken to have commenced on 1 September 2019.

Fodder being donated to mainland farmers was extended until the end of 30 June 2021 (01932 in Schedule 1).

Fodder being donated for bushfire relief PDF: 158 KB

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2 October 2019 Commencing 1 October 2019, TFES assistance for high-density goods will increase from 60% to 100%, claim processing time will be reduced from 35 days to 30 days and interest on late payments greater than 30 days will be paid to the claimant. TFES assistance PDF: 234 KB

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28 June 2019 Fodder being donated to mainland farmers was extended until the end of 30 June 2020 (01932 in Schedule 1) Fodder being donated to mainland farmers PDF: 129 KB

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1 March 2019 Backfatter pigs were included in Schedule 1, this is taken to have commenced on 1 January 2018 Backfatter pigs PDF: 119 KB

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9 August 2018 Fodder being donated to mainland farmers, until the end of 30 June 2019—01932 was included in Schedule 1 Fodder being donated to mainland farmersPDF: 47 KB

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9 November 2017 Variations in relation to self-assessed claimants and transhipment Variations in relation to self-assessed claimants and transhipmentPDF: 112 KB

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7 June 2017 Variation in relation to an authorised officer Variation in relation to an authorised officer PDF: 104 KB

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13 February 2017 Variation in relation to self-assessed claimants Variation in relation to self-assessed claimants PDF: 121 KB

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20 April 2016 Variation in relation to transhipment matters Variation in relation to transhipment matters PDF: 564 KB

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23 December 2015 Poppy straw—01931 was included in Schedule 1 Poppy straw PDF: 132 KB

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The previous MDs apply to goods shipped prior to 1 January 2016 PDF: 388 KB

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Information papers

Clause 8.3.1 of the Tasmanian Freight Equalisation Scheme (TFES) Ministerial Directions (MDs) provides that the Secretary may issue Guidelines in relation to the administration, meaning, or operation of, or manner of compliance with the MDs.

A series of Information Papers on key provisions of the MDs have been prepared by the Department to help claimants have a better understanding of TFES policy and provisions of the TFES MDs. They are also to help inform TFES claimants and claims agents of their responsibilities under the TFES MDs.

The intent of the Information Papers is to provide information and guidance only. They should not to be used in place of the TFES Ministerial Directions (MDs).

Date Title Document
26/10/20 Australian New Zealand Standard Industrial Classification 2006 Australian New Zealand Standard Industrial Classification 2006 DOCX: 1251 KB

Australian New Zealand Standard Industrial Classification 2006 PDF: 844 KB

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26/10/20 Claims Agents Claims Agents DOCX: 1829 KB

Claims Agents PDF: 1192 KB

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26/10/20 Conversion Factors Conversion Factors DOCX: 1855 KB

Conversion Factors PDF: 1198 KB

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26/10/20 Expanded Component (Transhipment) Expanded Component (Transhipment) DOCX: 1827 KB

Expanded Component (Transhipment) PDF: 851 KB

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26/10/20 Extension of Time Process Extension of Time Process DOCX: 1688 KB

Extension of Time Process PDF: 780 KB

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26/10/20 Incurred and paid the cost of shipping Incurred and paid the cost of shipping DOCX: 1688 KB

Incurred and paid the cost of shipping PDF: 780 KB

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26/10/20 King Island and the Furneaux Group Shipments King Island and the Furneaux Group Shipments DOCX: 2902 KB

King Island and the Furneaux Group Shipments PDF: 1596 KB

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26/10/20 Self-Assessed Claimants Self-Assessed Claimants DOCX: 1826 KB

Self-Assessed Claimants PDF: 1184 KB

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26/10/20 Sportspersons and Professional Entertainers Sportspersons and Professional Entertainers DOCX: 1827 KB

Sportspersons and Professional Entertainers PDF: 1179 KB

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30/08/21 Southbound Component Southbound Component DOCX: 1282 KB

Southbound Component PDF: 299 KB

30/08/21 Imported Good Component Imported Good Component DOCX: 1283 KB

Imported Good Component PDF: 302 KB

Contact details

Requests for information on applying for TFES assistance, requests for extension of time and other administrative matters should be directed to:

Tasmanian Transport Programs
Services Australia
GPO Box 1269
HOBART TAS 7001
Phone: 13 11  58
Fax: 03 6208 9976
Email: tfes.support@servicesaustralia.gov.au

Enquiries relating to policy matters, or requests for review of a Services Australia decision should be directed to:

Tasmanian and Shipping Programs Section
Department of Infrastructure, Transport, Regional Development and Communications
GPO BOX 594
Canberra ACT 2601
Email: TasmanianShipping@infrastructure.gov.au

Our Client Service Charter outlines Service Standards and provides information on how to provide feedback on our Services. We are subject to the Privacy Act 1988 and personal information is only collected or used in accordance with our Privacy Policy.

Tasmanian Freight Equalisation Scheme—Privacy Statement

The department collects personal information in accordance with the Privacy Act 1988 (Privacy Act) for the purpose of making and reviewing decisions under the Tasmanian Freight Equalisation Scheme and the Bass Strait Passenger Vehicle Equalisation Scheme.

Personal information collected may be:

  • used by the department
  • disclosed to third parties (e.g. other government agencies)
  • disclosed when required, or authorised by law, and
  • used for another purpose with your consent.

Collected information may be published on the department's website. Published information will be aggregated and will not disclose personal information.

For information about how you can access your personal information held by the department, seek corrections or complain about a privacy breach, please refer to the department's Privacy Policy.

If you have any questions, please contact the Privacy Officer.

Expenditure

TFES is demand-driven and expenditure varies with economic conditions. The tables below show the TFES expenditure for the quarter, financial year to date and the top twenty claimants for the quarter. Payment information reported in the tables is actual cash payments based on date of payment while the Annual Report provides expenditure information including the end of financial year accrual.

Selected expenditure information

Quarter 1: 1 July 2022 to 30 September 2022

Tasmanian Freight Equalisation Scheme (TFES)
Expenditure for the Quarter (as at 30 September 2022)
Data Expenditure $
Total TFES assistance $43,590,759.39
Year to date expenditure (as at 30 September 2022)
Data Expenditure $
Total TFES assistance $43,590,759.39
Top 20 customers for the Quarter
Rank Name of customer Amount of assistance paid $
1 Simplot Australia P/L $4,094,457.31
2 Norske Skog Boyer Mill $2,672,989.73
3 Mondelez Australia Pty Ltd $1,915,733.51
4 NSF-Saputo Dairy Australia Pty Ltd $1,828,384.73
5 McCain Foods (Aust)P/L $1,450,935.00
6 Nyrstar Sales & Marketing AG $1,449,129.00
7 Tasmanian Stockfeed Services (Manufacturing) $1,345,770.00
8 Mon-Timberlink Australia Pty Ltd $1,176,207.78
9 Tassal Operations Pty Ltd $906,695.06
10 Forth Farm Produce Pty Ltd T/A Harvest Moon $886,327.61
11 Rio Tinto Marketing Pty Ltd $861,000.00
12 Liberty Bell Bay Pty Ltd $807,430.00
13 North East Equity Pty Ltd T/A Sumich $805,767.59
14 NSF-Fonterra Australia Pty Ltd $787,053.48
15 FSE-Gibsons Ltd T/A Skretting Australia $746,895.77
16 Lactalis Australia Yd Pty Ltd $734,987.64
17 NSF-Dutch Mill Tasmanian Dairy Pty Ltd $714,211.74
18 Rio Tinto Aluminium Bell Bay Sales Pty Ltd $625,234.00
19 JBS Australia P/L $601,463.97
20 Premium Fresh Tasmania P/L $570,960.57

Background

The Australian Government has provided financial assistance to shippers of freight between Tasmania and mainland Australia under the TFES since July 1976. TFES was extended in 2008 to cover eligible shipments moved between the main island of Tasmania and King Island, and between the main island of Tasmania and any island in the Furneaux Group.

On 29 November 2013 the Australian Government released the Terms of Reference for a Productivity Commission inquiry into Tasmania's shipping costs and competitiveness of Tasmania's freight industry PDF: 78 KB. More information on the inquiry, including the final report, is available from the Productivity Commission website. On 13 March 2015 the Australian Government released its response to the Productivity Commission Inquiry Report on Tasmanian Shipping and Freight PDF: 53 KB.

From 1 January 2016, TFES was extended to include eligible non-bulk goods being shipped across the Bass Strait for the purposes of transhipment through an Australian mainland port.

Monitoring

In 2017 the Bureau of Infrastructure, Transport and Regional Economics (BITRE) reviewed the component of TFES covering eligible northbound goods shipped to the mainland for the purpose of transhipment. The final report of the BITRE's initial monitoring review of the expanded component was released on 16 March 2018 and covers the period from 1 January 2016 to 30 June 2017. The Australian Government response was released on 16 March 2018.