This proposal would provide $65 million in 2025-26 to support Tasmanian industry and address increased costs of travelling to and from Tasmania to the mainland.

The funding would cover:

• $3 million for a review of the Tasmanian Freight Equalisation Scheme (TFES), as recommended by the recent Senate Select Committee, and expand the terms of references to include the Bass Straight Passenger Vehicle Equalisation Scheme (BSPVES)
• $62 million for interim assistance to enhance the TFES while the review is conducted.

The proposal would start on 1 July 2025.