Shipping fairness crucial for growth

As an island state a cost efficient freight network and future strategy and critical for the current and future success of the agricultural sector. The Future Agricultural Strategy must consider this in its development including specific considerations for the Bass Straight Islands. It should provide a strategic outlook that looks ahead at least 50 years.
 

Short-term relief lobbied for by TasFarmers has been delivered under the TFES scheme following the last federal election, with a 25 per cent increase in financial assistance. TasFarmers also sought a review, which the Federal Government has committed to and is expected to complete by early 2026.
 

The Government’s review is set to examine how it can deliver a model that truly achieves freight cost parity, looking at how it can design the scheme to deliver on the idea that the freight cost between ports is the same as putting freight onto a truck over the same distance.
 

The current TFES scheme continues to fall short of fulfilling its original intent despite the recent increase. It’s important to ensure the scheme doesn’t become dilapidated again. The obvious fix is to legislate the scheme and make sure it keeps pace with rising costs by enshrining in law an annual indexation of payments linked to actual increasing freight rate changes. Producers, as the business paying freight costs must be protected, to ensure that increased government support reaches those that need it.
 

During our visits to the islands last week, TasFarmers heard a consistent message that policymakers should note: any revitalisation or redesign of the scheme must be bespoke for those living and shipping goods in these remote regions, where costs are significantly higher due to the smaller scale of services.
 

We are hearing this same message echoed through our annual survey, with the feedback being, the recent TFES increase has been quickly absorbed by the supply chain, rather than directly benefiting the primary users of shipping and transport services.

If the goal is true freight fairness, the next phase of the TFES must start from the realities faced by island communities, not from Canberra’s spreadsheets.

Beyond cost parity, shipping infrastructure and services should be included in the state's vision for increasing annual farm gate value to $10 billion by 2025. Only with a strong plan that invests in developing our ports, harbours, and shipping services for the purpose of making them commercial and professional will we succeed. 
 

The infrastructure and services needed will be required to handle the transport of livestock, fuel, feed, and fertiliser in peak times and any weather conditions while also serving the wider community with general cargo and everyday supplies for food, building materials, machinery, and exporting perishable goods of the islands, like dairy, beef, lamb, minerals, and resources.
  

The Minister for Agriculture, Gavin Pearce, announced on 12 October 2025 that the Government will develop a new long-term strategy for the state’s agricultural industry. This presents a unique opportunity to get the policy settings right for the shipping and infrastructure services needed between the islands, this can only be done by working in consultation with primary producers to ensure the right supports are in place for the future.
 

TasFarmers will continue to work with the Government to ensure our island homes, Tasmania, King, and Flinders Island, are not left behind in building the state’s next generation of agricultural success.