Extension to TFES welcomed
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Tasmanian industry has been further supported by the 2021 Federal Budget with the announcement of A$89.3 million over four (4) years - extension to the Tasmanian Freight Equalisation (TFES) scheme to provide import assistance for non-Australian imports.
This announcement is welcomed news for the freight and logistics sector in Tasmania, and will come as welcome news from many industry sectors of Tasmanian’s trading community during a time of soaring international freight rates, infrastructure charge increases and a general global disruption in supply chain models. This announcement serves as further acknowledgement that Tasmanian companies are challenged by the cost of shipping across Bass Strait (when compared to their mainland counterparts) with no international direct shipping servicing available, as all international shipping is transshipped via a mainland port before transiting to Tasmania.
With this further enhancement to the TFES to now include support for imported goods (where no Australian made equivalent is available), the reality is Tasmanian industry sectors now have complex supply chains with many inputs unable to be sourced within Australia. That said, this new assistance will encourage Tasmanian businesses to reinvest into their business and potentially source available local content where possible.
The agricultural, manufacturing, mining and aquaculture industries of Tasmania will all benefit from the proposed flat rate payment of A$700.00 per twenty-foot equivalent container from 01st July 2021 (claimable in October 2021). This assistance will support additional capital expenditure for equipment upgrades, exploration of new markets and ongoing research and development that comes directly from a reduction of costs to supply chain activities.