Prime Minister Tony Abbott yesterday announced a $203 million expansion to the Tasmanian Freight Equalisation Scheme, which will now include all goods shipped out of the state.

The $50 million a year sweetener will be locked in for at least four years, with the changes taking effect from January 2016.

Exporters said the Commonwealth cash injection exceeded their expectations, and would finally put them on a level playing field with businesses in mainland states.

Steve Henty, who represents the state's mining, agricultural, manufacturing and smelting industries, applauded yesterday's much-anticipated announcement.

"This is fantastic news that will drive Tassie exports for established companies and remove any bottlenecks for new entrants into the state," Mr Henty said.

His views were emphatically backed by Norske Skog general manager Rod Bender, who said differentiation between export and domestic goods under the TFES had been a major problem.

"This development is going to be good for many and it won't hurt any," Mr Bender said.

"This addresses the size of the market we can access economically while for others it may open up new markets."

Tasmanian Chamber of Commerce and Industry chairwoman Susan Parr said the extra funds would end a hiatus created by the loss of a direct overseas shipping service which brought exporters to their knees.

"This is recognition of the unfair trading conditions for exporters who were not eligible for TFES subsidies as well as fair handed investment in economic growth in Tasmania," Ms Parr said.

"Tasmanian products can now be judged on their quality, which in most cases will be superior."

Tasmanian Liberal and independent MPs have been lobbying hard alongside industry leaders to secure the long-awaited changes.

Mr Abbott said his attention would now turn to reforming coastal shipping regulation, including an overhaul of cabotage laws.