Tasmanian Freight Equalisation Scheme

The scheme aims to assist in alleviating the sea freight cost disadvantage incurred by shippers of eligible non‐bulk goods moved between Tasmania and the mainland of Australia.

The amendment allows charitable organisations to receive assistance for sea freight costs for shipments from the mainland to King and Flinders islands, retroactive from 1 May 2023 until June 2025.

[10]A month later, Leigh Titmus, the Managing Director of Webster Limited wrote that the scheme was inequitable and expressed his support for calls for assistance to be increased.

[15][16][17][18] In June 2014, a Productivity Commission inquiry found that "there is no coherent economic rationale for the TFES and it falls well short of what is needed to improve the lagging competitiveness of the Tasmanian economy.

[21] Traditionally, wood residues were shipped as bulk commodities, but the closure of the Triabunna chip export facility in 2011 led to higher transport costs, making road-rail freight economically unfeasible.

The government granted Majestic Timbers a contract to manage 180,000 tonnes annually for five years, with their business model heavily relying on the TFES subsidy.

[21] Critics argued that applying TFES to low-value commodities might discourage the development of better uses for residues, raising concerns about the long-term financial viability of these practices.