The Bass Strait Passenger Vehicle Equalisation Scheme (BSPVES) is an Australian Government initiative that offers uncapped federal funding to subsidise the cost of ferry travel across Bass Strait. This scheme primarily supports services operated by the Tasmanian Government-owned TT-Line Company Pty Ltd, linking the state of Victoria on the Australian mainland with the island state of Tasmania. The BSPVES also includes provisions for commuters who must fly between mainland Australia and King Island or the Furneaux Group due to the absence of ferry services.[1]
In 2022-2023, the BSPVES expended a total of $59.2 million. The most recent adjustment to the scheme’s rebate amounts was made on 7 May 2024, with the new rates effective from 1 July 2024.[1]
Introduced by the Commonwealth Minister for Transport and Regional Development in September 1996, the BSPVES aimed to bridge the gap in transport costs, making sea travel as equitable as road travel. The Scheme's implementation is seen as the first step in formalising the Sea Highway, a figurative highway linking Tasmania to the Australian mainland's National Highway.[2]
The Bureau of Transport Economics (BTE) released its third monitoring report in April 2000, which evaluated the scheme's impact for the 1998/99 period. The report noted that the scheme significantly increased demand for sea travel, resulting in a 12% rise in vehicle numbers and a 9.3% increase in total passenger numbers for TT Line, the primary ferry operator.
As a result of the Australian Government temporarily increasing the BSPVES, passengers on the Spirit of Tasmania ferry between Melbourne and Devonport were able to bring their vehicle at no extra charge from 1 March 2021, to 30 June 2021. The free vehicle fares also applied to motorbikes and bicycles, while caravans and camper vans received a discount equivalent to a standard vehicle fare. The initiative was part of the Government's efforts to boost Tasmanian tourism, and encourage Tasmanians to travel interstate and stimulate the Australian economy post-COVID-19.[3]
Administered by Services Australia on behalf of the Department of Infrastructure, Transport, Regional Development, Communications and the Arts, the scheme operates under Ministerial Directions. Rebates are calculated to match the cost of driving the equivalent distance by highway and are adjusted seasonally. Rebates are generally provided to drivers in the form of reduced fares charged by service operators. If the fare charged by the operator is below the applicable rebate, the rebate amount is capped at the fare charged.[1]
The original intent of the BSPVES was to ensure transport equity by making the cost of travelling and transporting goods across Bass Strait comparable to that of traveling similar distances on the mainland. However, several modifications and a focus on limited interests within Tasmania have undermined this goal. The scheme has evolved to primarily benefit passenger vehicles, excluding foot passengers and various types of freight, such as southbound consumables and international exports. Critics of the Scheme say it has been rebranded to focus on tourism, benefiting "driving holidays for mainlanders" rather than broader economic needs. Unlike land highways, the Sea Highway has not received equivalent funding, undermining its reliability and accessibility. Policy reversals and a lack of implementation have further deviated from the original promises. Administrative inefficiencies and a lack of alignment with public mandates have compounded these issues, hindering Tasmania's economic integration with the mainland.[2]