Senate debates

Wednesday, 30 July 2025

Questions without Notice

Tasmanian Freight Equalisation Scheme

2:32 pm

Photo of Tammy TyrrellTammy Tyrrell (Tasmania, Independent) Share this | | Hansard source

Good advice, President, thank you. My question is for the Minister representing the Minister for Infrastructure, Transport, Regional Development and Local Government, Senator McCarthy. In April 2025, the Albanese government announced an increase to the Tasmanian Freight Equalisation Scheme's assistance rates over two years. For Tasmania the cost of living is the cost of shipping. What we buy comes in on ships; what we sell we ship out. But, when I chaired the 2024 select committee into the operation of the scheme, I heard that the thing Tasmanians want most urgently and need most critically is streamlining. The TFES is slow to administer, slow to deliver and overly complicated to apply—and, for many producers, the juice ain't worth the squeeze. Tasmanian industry spent the whole federal election listening for some commitment from Labor and the coalition to modernise this bureaucratic and outdated scheme. I didn't hear one. Did I miss it?

2:33 pm

Photo of Malarndirri McCarthyMalarndirri McCarthy (NT, Australian Labor Party, Minister for Indigenous Australians) Share this | | Hansard source

Thank you, Senator Tyrrell, for the question. No, you would not have missed the fact that our government has committed very strongly to Tasmania. We have delivered on our election commitment to increase assistance under the Tasmania Freight Equalisation Scheme and we are backing Tasmanian communities and businesses by boosting the TFES payment by 25 per cent for the next two years so they do get a fair go.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Tyrrell, first supplementary?

Photo of Tammy TyrrellTammy Tyrrell (Tasmania, Independent) Share this | | Hansard source

Big businesses can afford to have someone on payroll who just handles TFES applications day in, day out. For small businesses you can't do that, so most of the money paid out under the scheme currently goes to the big producers. Of Tasmania's 130-odd registered exporting businesses, five receive one-third of the TFES reimbursement. Without reform, won't your 25 per cent increase just go to the big players and not help out the little guys?

2:34 pm

Photo of Malarndirri McCarthyMalarndirri McCarthy (NT, Australian Labor Party, Minister for Indigenous Australians) Share this | | Hansard source

Thank you, Senator Tyrrell. Naturally, our election commitment to Tasmania is an important one. Clearly, if there are particular issues that you have with people coming to you, I know that the minister would like to hear from you directly in terms of those particular stakeholders. But I do say that, throughout the election campaign, we were very clear on delivering our election commitments right across Australia and, indeed, especially in Tasmania. It's wonderful to see the Tasmanian representation that we do have in our government.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Tyrrell, second supplementary?

Photo of Tammy TyrrellTammy Tyrrell (Tasmania, Independent) Share this | | Hansard source

During the election, you also announced an independent review to ensure TFES is fit for purpose. Do you not already know whether it is fit for purpose? I can't understand how there is any doubt on this question. Labor was represented at the Senate select committee public hearings. Former senator Urquhart was there. You heard from witnesses and read the submissions. They told you it's not fit for purpose—verbatim, repeatedly. What do you expect your 'independent review' will tell you?

2:35 pm

Photo of Malarndirri McCarthyMalarndirri McCarthy (NT, Australian Labor Party, Minister for Indigenous Australians) Share this | | Hansard source

Senator Tyrrell, I believe I have answered your questions in regard to our commitment to Tasmania and TFES, but I will take on board some of those points you've just raised and get back to you.