COVID-19 National: Business – International Freight Assistance Mechanism (IFAM)

This program is a temporary, emergency measure which aims to help restore critical global supply chains which have been heavily impacted by COVID-19 containment measures around the world. It seeks to keep key international freight links with trading partners open for goods coming into, and going out of Australia.

The program forms part of the Australian Government's $1 billion Relief and Recovery Fund which will support regions, communities and industry sectors that have been severely affected by the Coronavirus (COVID-19) crisis. The fund was announced as part of the Government’s response to the economic impact of COVID-19.

The cost of IFAM supported flights can be found in the IFAM flight schedules (outbound and inbound). These prices are inclusive of the IFAM government support, however, these prices are not inclusive of freight forwarder fees or additional costs. The government contribution will decrease over time, according to market dynamics.

Airfreight costs will be more than pre-COVID airfreight rates and Australian businesses will need to make a financial contribution towards the increased cost of their freight. The pricing in the flight schedules is inclusive of the government support but not inclusive of freight forwarders fees or additional costs.

If the scheduled IFAM supported flights do not meet an exporter’s needs, the exporter may discuss their options with their freight forwarder and consider applying for grant assistance through IFAM. Freight forwarders can apply for grant assistance on behalf of the exporter.

An initial total funding pool of $110 million is available. IFAM received a further $241.9 million in July 2020.

On 6 October, the Australian Government announced an additional $317.1 million in funding for the International Freight Assistance Mechanism (IFAM). With $95 million to directly address upcoming seasonal demand and $222.1 million to extend IFAM to the middle of 2021.

Eligible applicants include Australian businesses trading internationally.

Eligibility for products supported by IFAM is determined by a set of overarching principles rather than a list of commodities. That is products that are Australian made or produced, high-value, time sensitive, reliant on airfreight (for example, due to perishability) or otherwise deemed to be in the national interest. For example:
- Products that could not be sent by an alternative to airfreight without losing their essential product characteristics or value.
- Goods that have a limited shelf life or are required to meet a sudden or immediate need.

IFAM is not limited to agriculture and seafood goods. Any product which meets the above principles may be considered for IFAM support.

Other products eligible under the principle-based framework may include medicines which have a short shelf-life, are high-value and are reliant on airfreight to meet a sudden or immediate need – for example blood products, or raw material ingredients for
pharmaceuticals.

Frozen product such as frozen meat or seafood do not meet the criteria for IFAM support, as these are not time-sensitive or perishable products. Powdered milk is also out of scope.

The eligibility principles apply to all exports seeking IFAM support, including via IFAM grants, charter flights and block bookings

Please refer to the Fact Sheet for the complete list of eligible products.