The Tassie tax
Tasmanians: Paying extra for everything, just like Trump’s tariffs, but quieter.
Forget Donald Trump’s Tariffs, Tasmanian’s been paying a premium for decades
This week, Donald Trump announced sweeping new tariffs on global imports, including Aussie exports. Markets tumbled. Headlines screamed. Politicians flinched. But here in Tasmania, we just shrugged.
Why? Because we’ve been paying a version of those tariffs our whole lives.
It’s called the Tassie Tax — the quiet penalty for living on an island that most of the country forgets exists until an election rolls around.
While Trump’s tariffs are loud and deliberate, ours are silent and structural. No presidential decree. Just a slow bleed caused by freight costs, policy neglect, and a market that punishes distance.
Let’s break it down:
The real cost of island life
If you’ve ever compared the price of groceries, fuel, hardware, or even a pair of school shoes between Hobart and Melbourne, you’ll know what I’m talking about. It’s not just inflation. It’s not just supply and demand. It’s geography, and the systems that were supposed to fix it.
TFES: A scheme in name only?
The Tasmanian Freight Equalisation Scheme (TFES) was meant to make transport to and from Tasmania more affordable. The concept is that it should be the same as putting something on a truck between two points on the mainland. The reality is bureaucratic and outdated.
But what about the everyday Tasmanian? The mum in Devonport buying nappies. The café owner in Launceston ordering beans and crockery. The tradie in Huonville waiting for parts that cost more and take longer to arrive.
They’re still waiting for equality.
We’ve got less Choice — and pay more for it
Coles and Woolworths have a stranglehold on our shelves. And while ALDI reshaped the market on the mainland, they still haven’t made the leap across Bass Strait. Why? High logistics costs. Low political pressure. And an acceptance that Tasmania is just too hard.
That lack of competition means prices stay high, innovation lags, and families miss out.
We’re invisible — until we’re needed
Every few years, someone remembers we exist. Promises are made. Pork barrels are rolled out. Then silence. Whether it’s shipping, supermarkets, banking, fuel, or freight, we’re an afterthought in national economic planning.
So while Trump throws around the word “tariff” like it’s a new idea, Tasmanians just quietly keep paying ours.