Increased support for Tasmanian freight begins

Tasmanian businesses began receiving a 25 per cent increase to financial assistance on Monday as the Albanese Labor Government delivered on a key election commitment to boost the Tasmanian Freight Equalisation Scheme.

The scheme recognises Tasmania's reliance on shipping across the Bass Strait and supports Tasmanian shippers to move a range of non-bulk goods by sea, including those used in manufacturing, mining, agriculture, forestry, fishing and other local industries.

Tasmanian businesses will now receive higher assistance rates from the Australian Government of up to $1,070 per twenty-foot equivalent unit under the scheme's domestic component.

For goods being shipped from Tasmania to the world and being transferred from one ship to another at mainland ports in the process, the flat rate of assistance will increase to $875 per twenty-foot equivalent unit. The same rate will apply to international goods being imported to Tasmania via a mainland port.

The Tasmanian Freight Equalisation Scheme was introduced in 1976 by the Whitlam Government and was expanded to include the Bass Strait islands in 2008.

Infrastructure, Transport, Regional Development and Local Government Minister Catherine King (pictured) said the scheme ensured Tasmanian industries remained competitive with their mainland partners.

“We can't build a bridge between Tasmania and the mainland, so this scheme is our way to ensure Tassie industries are just as competitive as their mainland partners and can export their products to the rest of the world,” King said.

The Albanese Government has also committed to commissioning a comprehensive review of the scheme to ensure it continues to support Tasmanian businesses into the future.

Picture: supplied