The Tasmanian Freight Equalisation Scheme (TFES) provides financial assistance for costs incurred by shippers of eligible non-bulk goods moved by sea across Bass Strait. This report is BITRE's second 4-yearly monitoring review of all components of the TFES. The focus is the volume and value of eligible claims for goods shipped between Tasmania and the mainland in the 4 years from 2019–20 to 2022–23.

The Australian Government spent $101.0 million on the Bass Strait Passenger Vehicle Equalisation Scheme in the 2 years to June 2023 ($41.8 million in 2021–22 and $59.2 million in 2022–23).

The Australian Government spent $77.7 million on the Bass Strait Passenger Vehicle Equalisation Scheme in the 2 years to June 2021 ($40.8 million in 2019–20 and $36.9 million in 2020–21).

Under the scheme passengers travelling with a vehicle across Bass Strait can receive a rebate applied against the vehicle fare charged by a ferry operator.

The Australian Government spent $104.1 million in the 2 years to 2018–19 ($51.3 million in 2018–19, and $52.8 million in 2017–18) on the Bass Strait Passenger Vehicle Equalisation Scheme (the Scheme).

Under the Scheme passengers travelling with a vehicle across Bass Strait can receive a rebate applied against the vehicle fare charged by a ferry operator.

Over the two-year monitoring period BITRE estimates that:

• The number of sea passengers with a motor vehicle may have been 29.2% higher than without the Scheme.
• Just under 26 000 additional visitors to Tasmania travelled by sea due to the Scheme in 2018–19 (28 600 new visitors in 2017–18).

These additional visitors to Tasmania spent an estimated $80.6 million in 2018–19 ($88.7 million in 2017–18).

The Australian Government spent $44.7 million in 2016–17 on the Bass Strait Passenger Vehicle Equalisation Scheme (the Scheme), and $44.1 million in 2015–16.

Under the Scheme passengers travelling with a vehicle across Bass Strait can receive a rebate applied against the vehicle fare charged by a ferry operator.

Over the two-year monitoring period we estimate that:

• The number of sea passengers with a motor vehicle may have been 29.0% higher than without the Scheme.
• Just under 26 450 additional visitors to Tasmania travelled by sea due to the Scheme in 2016–17 (27 650 new visitors in 2015–16).

These additional visitors to Tasmania spent an estimated $71.4 million in 2016–17 ($74.6 million in 2015–16).

In March 2015 the Australian Government responded to the Productivity Commission's (2014) Tasmanian Shipping and Freight Report by announcing the Tasmanian Freight Equalisation Scheme (TFES) would be expanded from 1 January 2016 to provide assistance to goods going to markets not previously covered by the Scheme.

The announcement included a new monitoring process, with the Bureau of Infrastructure, Transport and Regional Economics (BITRE) to conduct an initial review of the expanded component in 2017 (this review). Thereafter, monitoring of the expanded component will become part of the BITRE's general TFES monitoring reviews commencing in 2019.

In terms of the level and appropriateness of the flat rate for the expanded component, BITRE's finding in this 2017 review are that:

• There is little relevant information on overall rate trends for freight shipped due to a limited claims history and many destinations.
• The appropriate benchmark for freight costs is the shipping cost across Bass Strait as, to be eligible, freight must be transhipped via an Australian mainland port.

BITRE sought public comment on a draft of this review in December 2017. Two submissions were received (including one after the finalisation of the report).

The Australian Government's response is available here.

The Ministerial Directions governing the Bass Strait Passenger Vehicle Equalisation Scheme require us to produce a monitoring report every 2 years. Over the monitoring period (2013–14 to 2014–15):

• The Australian Government spent $40.9 million in 2014–15 on the Scheme, up 9.1% from 2013–14, and $37.5 million in 2013–14 (up 14.3% on 2012–13).
• The number of sea passengers with a motor vehicle may have been 23.6% higher than without the Scheme.
• Just under 18 000 new visitors to Tasmania travelled by sea due to the Scheme in 2014–15 (up from 14 500 new visitors in 2013–14).
• New visitors to Tasmania spent an estimated $50.2 million in Tasmania in 2014–15 (up from an estimated $39.0 million in 2013–14).

The Ministerial Directions governing the Bass Strait Passenger Vehicle Equalisation Scheme require us to produce a monitoring report every 2 years. The monitoring report pays specific regard to the movement of fare prices and the movement of the number of eligible passengers and the number of eligible passenger vehicles.

This report presents the results of our thirteenth review of the Bass Strait Passenger Vehicle Equalisation Scheme, covering the operation and impact of the Scheme for the period 1 July 2009 to 30 June 2011.

This report presents the results of BTRE's inaugural review of the Bass Strait Passenger Vehicle Equalisation Scheme. It covers the operation and impact of the Scheme up to (and including) 1996–1997.

• BSPVES Monitoring Report 1
  
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