Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey congratulated the government on the expansion, describing its impact for exporters so far as a "game-changer".

The federal government on Friday announced a raft of immediate and proposed changes to the Tasmanian Freight Equalisation Scheme - worth $147.3 million in 2017-18.

With most goods coming in and out of Tasmania by sea, the scheme partially subsidises the cost for Tasmanian businesses shipping across the Bass Strait. This is based on the price difference between sea and road freight over an equivalent distance in an effort to keep the businesses competitive.

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"[The scheme] has really benefited Tasmanian international exports," Mr Bailey said. "That plays out across the Tasmanian economy generally."

Mr Bailey added that a 2016 expansion of the scheme to include goods shipped from Tasmanian overseas via another Australian port had been one of the "key factors" in pushing the state's economy forward in recent years.

That earlier expansion - worth an estimated $34.7 million last financial year - will be locked in immediately under the new changes. From October, payment processing times will be reduced from 35 to 30 days.

Pending a review due by the end of the year, new funding would also be made available for goods brought into the state through an Australian port when there is no Australian-made equivalent.

Further assistance for high-density goods transported to and from the mainland could also be introduced.

Launceston Chamber of Commerce executive officer Neil Grose echoed Mr Bailey's sentiments.

He commended the federal government specifically on the review of assistance for high-density items, adding that it was important for the Tasmanian economy to continue to improve its competitiveness.

"Bass Strait should not be an economic impediment to doing business in Tasmania and business would certainly welcome the strengthening of the freight equalisation scheme," Mr Grose said.

State Growth Minister Michael Ferguson described the announcement as a red-letter day for state and federal relations. "This is fantastic news for Tasmania," he said.

Federal Agricultural Minister Bridget McKenzie said the changes would secure Tasmania's place as a "strong contributor" to the national economy.

The 2016 export expansion formed a central element of the federal government response to a scathing Productivity Commission report on the state's shipping and freight industry.

More than $2 billion had been outlaid on the scheme since implementation, which had fallen "well short" of improving the lagging competitiveness of Tasmania's economy, the report found.

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