Tasmanian Freight Equalisation Scheme

Tasmanian Freight Equalisation Scheme

  • Applications are accepted at any point in time.
  • The assistance provided is determined by calculating the variance between the freight expenses incurred for sea transportation and the hypothetical costs for moving the goods by road over an equivalent distance.

The Tasmanian Freight Equalisation Scheme offers financial aid to both businesses and individuals, helping offset the expenses associated with transporting goods via sea routes. It specifically targets eligible non-bulk goods, aiming to level the playing field for Tasmanian industries. Given the geographical constraints that limit interstate transportation options to road or rail, this scheme ensures Tasmanian shippers can compete on par with counterparts in other markets.

Key Requirements

The level of assistance is determined by comparing the freight costs of sea transport with the theoretical freight costs of road transport over the same distance.

There are three categories of assistance available:

Northbound goods

Assistance is provided for freight shipping of eligible goods from Tasmania intended for permanent use or sale on the Australian mainland. These goods must be manufactured in Tasmania. Goods produced on the mainland or outside Tasmania are ineligible unless they have undergone manufacturing processes in Tasmania.

Southbound goods

Assistance is available for:

  • manufacturing or mining businesses in Tasmania shipping eligible raw materials, machinery, and equipment from the Australian mainland to Tasmania
  • individuals or businesses engaged in primary production in Tasmania shipping eligible raw materials, machinery, and equipment used in primary production from the Australian mainland to Tasmania. These goods must be manufactured in mainland Australia or, if imported, must have undergone manufacturing processes in mainland Australia.
Intrastate

Assistance is also provided for freight shipments between King Island, Flinders Island, any island in the Furneaux Group, and the main island of Tasmania.

What is eligible for funding?

Northbound goods

For freight cost assistance eligibility, northbound goods must satisfy the following criteria:

  • originating from Tasmania
  • incurring a disadvantage in sea freight costs.

Eligible northbound goods may target either domestic or other markets, each subject to different criteria:

  • domestic goods must remain within the Australian mainland, specifically for permanent use or sale
  • other market goods must be shipped to the Australian mainland, unloaded, and then forwarded to other markets via sea or air transport.

Distinct assistance rates apply to both domestic and other market northbound goods, necessitating separate claims for each type. If uncertain about the destination of goods, they should be claimed as Northbound other markets. Additionally, eligible northbound goods must be listed in Schedule 1 of the TFES Ministerial Directions on the Department of Infrastructure, Transport, Regional Development, Communications and the Arts website. Goods not listed can be applied for inclusion.

Southbound goods

To qualify for freight assistance, southbound goods must:

  • comprise raw materials or equipment intended for use in manufacturing or mining processes within Tasmania
  • incur a sea freight cost disadvantage.

Eligible southbound goods may be domestic or imported, each with specific eligibility criteria:

  • domestic goods are produced or manufactured on the Australian mainland or, if imported, have undergone mainland manufacturing processes
  • imported goods are shipped from overseas to Tasmania via a mainland Australian port.

Imported goods are eligible if:

  • shipped from the mainland to Tasmania on or after July 1, 2021
  • arrived in Tasmania within six months of import to Australia
  • have no Australian equivalent.

Claims for southbound domestic and imported goods shipments must be made separately, each attracting different assistance rates.

Intrastate

Eligible intrastate goods include:

  • items produced or manufactured on the main island of Tasmania for permanent use or sale on King Island or the Furneaux Group
  • goods produced or manufactured on King Island or the Furneaux Group for permanent use or sale on the main island of Tasmania
  • raw materials or equipment produced or manufactured on the main island of Tasmania for use in the claimant’s manufacturing or mining processes on King Island or the Furneaux Group
  • material inputs, machinery, implements, or equipment produced or manufactured on the main island of Tasmania for use in the claimant’s agriculture, forestry, or fishing activities on King Island or the Furneaux Group.

Approved sea freight routes under the intrastate component of the King Island and Furneaux Group Scheme include connections between:

  • any port on King Island and any port on the main island of Tasmania
  • any port in the Furneaux Group and any port on the main island of Tasmania.

What companies are eligible for funding?

Northbound goods

To qualify for claims on northbound shipments, you must have covered and settled the shipping expenses for the goods. Typically, you would be the Tasmanian producer, manufacturer, or purchaser of the goods.

Southbound goods

This category is applicable to businesses primarily involved in manufacturing or mining within Tasmania. To be eligible, businesses must:

  • register and have their eligibility for the scheme confirmed by us
  • transport raw materials and equipment from the Australian mainland to Tasmania
  • utilise the raw materials and equipment in their own manufacturing or mining operations
  • have incurred and settled the freight costs to make a claim.
Intrastate

To be eligible for claims on intrastate goods shipments, you must have covered and settled the shipping expenses between the Tasmanian mainland and either King Island or the Furneaux Group. In most cases, you would be the seller or buyer of the goods. Additionally, to claim some intrastate shipments originating from the Tasmanian mainland, you must also be determined by us to be primarily engaged in manufacturing, mining, agriculture, forestry, or fishing on King Island or the Furneaux Group.

Is this grant competitive or entitlement based?

Entitlement. Applications are assessed against eligibility criteria.

How can Avant Group help?

When you’re a business owner, you may not have time to work through the red tape and audits required to apply for government grants.

Avant Group is your partner for grant success! We take all the hassle out of the entire grant application process from working through the red tape, writing the application and managing audit and reporting requirements – so you can focus on running your business.

Success Only Fees

Avant Group works on a Success Only Fee basis.

We also offer:

  • All AusIndustry auditing management included at no additional cost
  • Hands on technical project management covering application writing and administration aspects
  • A highly skilled advisory team with consultants from engineering, marketing and finance disciplines
  • Government accreditation
  • A dedicated account manager who will work with you every step of the way with your grant application

Want to know more? Contact us for an obligation-free assessment of your eligibility.