A REVIEW of the Tasmanian Freight Equalisation Scheme, a pre-federal election promise by both major parties, is now underway, minister Catherine King has announced.
The review will consider if TFES could better support local businesses, including farmers and producers, to compete in domestic and other markets.
It will also consider how the Bass Strait Passenger Vehicle Equalisation Scheme is reducing the cost of moving passenger vehicles across the Bass Strait. And it will explore other issues raised by the 2024 Senate Select Committee inquiry into TFES.
The review will be carried out by newly appointed independent reviewers Dr David Parmeter and Dr Jenny Gordon. Mr Parmeter is the former Chair of the Maritime Industry Australia Limited and the current Chair of the Australian Mariners’ Welfare Society. Dr Gordon served previously as the Chief Economist at DFAT and currently serves on the Asian Development Bank Institute’s Advisory Council.
Ms King, the Minister for Infrastructure, Transport, Regional Development and Local Government, said “We know how important these financial support schemes are, as Tasmanians don’t have the interstate road or rail options that their mainland counterparts do.
“The Albanese Labor Government is committed to ensuring these critical schemes are fit-for-purpose and best serving Tasmanians, including reducing the red tape for efficient shipping.
“Since July 2025, Tasmanian businesses have already been benefitting from a 25% increase in assistance rates under the scheme – putting more money in their back pockets at a time it’s needed most.
“A strong shipping industry means new jobs, supply chain security and economic diversity, which is why we are investing an additional $95 million in the TFES over the next two years.
“I look forward to seeing the outcomes of the review as we continue to support a stronger future for Tasmanians,” Ms King said.
A final review report and recommendations to the government are expected in the first half of 2026.
Further information on the schemes and the review, including the review terms of reference, is available on the DITRDCSA website.