Simplifying the Tasmanian Freight Equalisation Scheme for Tasmanian Businesses

The Tasmanian Freight Equalisation Scheme (TFES) might sound complex, but it plays a crucial role in the success of Tasmanian businesses. For most businesses, maximising their TFES can mean the difference between thriving and merely surviving. In this post, we will break down the concept of the TFES, its importance, and how local businesses can leverage it to their advantage.

What is the Tasmanian Freight Equalisation Scheme?

Freight equalisation is designed to create a level playing field for businesses regardless of their location. It aims to reduce the disparity in freight costs that can occur due to geographical challenges.

The purpose of the TFES is to offset the cost disadvantage of moving goods across Bass Strait.

The Scheme has multiple components covering goods moving north or south or to the Islands. Since 2016 it has grown to include transhipped goods destined for export markets.

The Scheme operates under Ministerial Directions issued by the Commonwealth Minister for Infrastructure, Transport, Regional Development, Communications and the Arts.

There are 5 components of the Scheme that you can apply for:

• Northbound domestic goods, covering goods that are staying on the Australian mainland

• Northbound other markets goods, covering goods that are shipped to the Australian mainland and then transported to other markets

• Southbound domestic goods, covering Australian goods for manufacturing, mining, agriculture, forestry and fishing businesses

• Southbound imported goods, covering imported goods for manufacturing, mining, agriculture, forestry and fishing businesses

• Intrastate, covering goods shipped between the mainland of Tasmania and either King Island or the Furneaux Group.

In addition, you may be eligible for assistance if your goods belong to one or more of the following special categories:

• sportspersons

• professional entertainers

• brood mares.

Why is Freight Equalisation Important?

Freight equalisation is vital for several reasons:

• Promotes Fair Competition: It allows businesses in remote areas to compete on equal footing with those in urban centers.

  
  

• Encourages Local Economies: By reducing shipping costs, local businesses can offer more competitive prices, which can stimulate local economies.

  
  

• Supports Job Creation: When local businesses thrive, they can hire more employees, contributing to job growth in the community.

  
  

• Enhances Consumer Choice: With more businesses able to compete, consumers have a wider range of products and services to choose from.