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.

The Department of Human Services (DHS) undertakes delivery of TFES and the Bass Strait Passenger Vehicle Equalisation Scheme on behalf of the Department of Infrastructure, Transport, Cities and Regional Development (Infrastructure). Information on eligibility for assistance and how to submit a claim is available on the DHS 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 28 June 2019 DOC: 329 KB PDF: 1031 KB ReadSpeaker. A Conversion Factors Information Paper has been issued under the MDs. Previous variations to the MDs are outlined in the following table.

Variations to the TFES MDs

DateVariation informationVariation instrument
28 June 2019 Fodder being donated to mainland farmers was extended until the end of 30 June 2020 (01932 in Schedule 1) PDF: 129 KB ReadSpeaker
1 March 2019 Backfatter pigs were included in Schedule 1, this is taken to have commenced on 1 January 2018 PDF: 119 KB ReadSpeaker
9 August 2018 Fodder being donated to mainland farmers, until the end of 30 June 2019 – 01932 was included in Schedule 1 PDF: 47 KB ReadSpeaker
9 November 2017 Variations in relation to self-assessed claimants and transhipment PDF: 112 KB ReadSpeaker
7 June 2017 Variation in relation to an authorised officer PDF: 104 KB ReadSpeaker
13 February 2017 Variation in relation to self-assessed claimants PDF: 121 KB ReadSpeaker
20 April 2016 Variation in relation to transhipment matters PDF: 564 KB ReadSpeaker
23 December 2015 Poppy straw—01931 was included in Schedule 1 PDF: 132 KB ReadSpeaker

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

Review of decisions

Part 7 of the MDs outlines the steps to be followed if you wish to apply for a review of a decision.

Decisions made by the Department of Human Services (DHS)

If you are adversely affected by a DHS decision, you can seek a review of that decision. You must send the request to DHS within 30 days of the original decision date. DHS will then conduct a review of its decision and you will be notified of the outcome and the reasons for the decision within 30 days.

If you are unhappy with DHS’s second decision, you can seek another review. You must send the request to DHS within 30 days of its second decision date. The second review will be conducted by the department and you will be notified of the outcome and the reasons for the decision within 30 days.

Decisions made by the Department of Infrastructure, Transport, Cities and Regional Development

If you are adversely affected by a departmental decision, you can seek a review of that decision. You must send the request within 30 days of the department decision letter. The department will then conduct a review of the decision and you will be notified of the outcome and the reasons for the decision within 30 days.

If you are unhappy with the department’s second decision, you can seek another review. You must send the request within 30 days of the department’s decision letter. The second review will be conducted by a senior departmental officer who is at arms-length to the original decision maker. The department will notify you of the outcome and the reasons of the decision within 30 days.

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 
Department of Human Services 
GPO Box 1269 
HOBART TAS 7001 
Phone: 13 11 58
Fax: (03) 6222 2149 
Email: tfes.support@humanservices.gov.au.

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

Tasmanian Shipping Section
Department of Infrastructure, Transport, Cities and Regional Development
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.

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.

Expenditure for the Quarter (as at 30 June 2019)

DataExpenditure
Total TFES assistance $53,329,686.27

Year to date expenditure (as at 30 June 2019)

DataExpenditure
Total TFES assistance $153,602,587.89

Top 20 claimants for the Quarter

Rank

Name of Customer

Amount of Assistance Paid $

1

SIMPLOT AUSTRALIA P/L

$7,759,083.05

2

NORSKE SKOG BOYER MILL

$3,313,311.96

3

MONDELEZ AUSTRALIA PTY LTD (FORMERLY KRAFT)

$1,921,484.92

4

GLENCORE AUSTRALIA PTY LTD

$1,842,400.00

5

TASSAL OPERATIONS PTY LTD

$1,811,464.45

6

NSF-JBS AUSTRALIA P/L

$1,682,079.09

7

TASMANIAN STOCKFEED SERVICES (MANUFACTURING)

$1,675,800.00

8

FORTH FARM PRODUCE PTY LTD

$1,632,403.97

9

NYRSTAR SALES & MARKETING AG

$1,575,700.00

10

MON-TIMBERLINK AUSTRALIA PTY LTD

$1,380,638.72

11

NSF-DRISCOLLS AUSTRALIA PTY LTD

$1,367,814.26

12

RIO TINTO MARKETING PTY LTD

$1,142,400.00

13

PREMIUM FRESH TASMANIA P/L

$981,858.70

14

MCCAIN FOODS (AUST)P/L

$970,425.00

15

NORTH EAST EQUITY PTY LTD T/A SUMICH

$944,151.02

16

LION BEER, SPIRITS & WINE PTY LTD

$916,202.11

17

FSE-GIBSONS LTD T/A SKRETTING AUSTRALIA

$902,452.94

18

NSF-FONTERRA AUSTRALIA PTY LTD

$871,801.90

19

HOUSTONS FARM

$853,964.85

20

TASMANIAN DAIRY PRODUCTS CO LTD

$832,035.64

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 ReadSpeaker. 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 ReadSpeaker.

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.

Print

Last Updated: 14 August, 2019