Tasmanian Freight Equalisation Scheme (TFES)

Purpose and Program Overview

The Tasmanian Freight Equalisation Scheme (TFES) provides financial assistance to Tasmanian businesses and individuals to offset the higher costs of transporting eligible goods by sea. The program is designed to create a level playing field for Tasmanian industries by compensating for the freight cost disadvantage they face compared to mainland businesses, which can transport goods by road or rail.

By reimbursing the difference between sea freight costs and the notional road freight costs over the same distance, the TFES supports Tasmanian businesses in competing effectively in interstate and export markets. This assistance plays a crucial role in sustaining Tasmania’s economic activity, promoting business growth, and fostering regional employment.

No total funding pool is specified, and applications can be made at any time, reflecting the program’s ongoing commitment to supporting the freight needs of Tasmanian enterprises.

Key Grant Details

• Grant amount: Financial assistance based on the difference between sea freight costs and equivalent road freight costs
• Application period: Open year-round; applications accepted at any time
• Eligible industries: Tasmanian businesses involved in manufacturing, primary production, mining, and other sectors shipping eligible goods by sea
• Co-contribution: Not applicable
• Location: Tasmania, Australia

Priority Sectors

The scheme targets a broad range of sectors within Tasmania, including manufacturing, mining, primary production, and general freight. It is not limited to specific industries but focuses on eligible goods transported by sea.

Funding Scope

• Categories of assistance:
  • Northbound goods: Freight from Tasmania to the Australian mainland for permanent use or sale; goods must be manufactured or processed in Tasmania
  • Southbound goods: Freight from the Australian mainland to Tasmania for manufacturing, mining, or primary production purposes; goods must be manufactured or processed on the mainland
  • Intrastate freight: Freight between King Island, Flinders Island, the Furneaux Group, and the Tasmanian mainland
• Funding calculation: Based on the difference between actual sea freight costs and notional road freight costs for the same distance
• Eligible funding duration: Ongoing; no fixed project timeline

Eligibility Criteria

• Registered business or individual operating in Tasmania
• Goods must be eligible for non-bulk freight as defined by the scheme
• Goods must meet manufacturing or processing requirements depending on freight direction (northbound or southbound)
• Must provide evidence of freight costs and eligibility of goods
• ABN registration required
• Compliance with scheme guidelines and documentation requirements

Eligible Activities and Expenses

• Freight costs for transporting eligible non-bulk goods by sea between Tasmania and the Australian mainland
• Freight costs for eligible intrastate shipments between Tasmanian islands and the mainland
• Costs must be directly related to the shipment of eligible goods; other expenses, such as capital equipment or staffing, are not covered

Assessment Process

• The TFES operates on an entitlement basis
• Applications are assessed for eligibility against program criteria
• Assistance is calculated based on documented freight costs and the eligibility of goods
• No competitive evaluation or scoring process applies

Recent Updates for Tasmanian Freight Equalisation Scheme

• The program remains open for applications at any time
• Eligibility criteria and freight categories continue to be refined to ensure alignment with industry needs
• No recent changes to the funding methodology or application process have been announced

Application Tips

• Verify that goods meet manufacturing and eligibility requirements before applying
• Maintain detailed records of freight costs and supporting documentation
• Submit complete and accurate applications to avoid processing delays
• Familiarise yourself with the scheme guidelines to ensure compliance
• Seek professional advice if uncertain about eligibility or documentation

Where to Get Help

Consider consulting with a professional grant specialist, such as Pattens Group. We offer initial assessments to review your business’s eligibility and evaluate how well your project aligns with the grant’s objectives. You can also visit relevant government websites for application templates and further guidance.