Preliminary Outcomes Report 2020-21
Selected tables:
Read the full report here.
Media release – Peter Gutwein, Premier, 30 July 2021
Preliminary Outcomes Report for 2020-21
The Preliminary Outcomes Report for 2020-21, released today, demonstrates our economic and fiscal recovery from COVID-19 continues to progress ahead of expectations.
We took strong action at the height of the pandemic to support our economy and create jobs, including through our successful Construction Blitz and Homebuilder Programs, and today’s report confirms our plan to secure Tasmania’s future is working.
Our strong economy is resulting in increased revenues to be able to invest more into essential services. Tasmania’s forecast preliminary Net Operating Deficit for 2020-21 will be $411.5 million, which is a $706.5 million improvement on that budgeted last year. The state’s Net Debt is estimated to be $459 million which is an improvement of $1.395 billion on last year’s budget.
Pleasingly, despite the challenges presented by the COVID-19 pandemic, private sector construction activity has remained strong, underpinned by government infrastructure investment of more than $640 million, which was 23 per cent higher than investment in the previous year.
In light of our improved budget position, the government has made a decision to allocate increased funding over and above that committed to at the election to meet additional demands on our health system and to support vulnerable Tasmanians, as well as ensuring we have the flexibility to respond further should we need to in terms of Covid.
This decision, which commits more than an additional $600 million to meet both the demand in health, as well as ensuring we have the ability to respond to Covid should we need to, means that whilst we are forecasting cash surpluses from next year and over the forward estimates, that we will now return to a net operating surplus one year later than originally planned in 2023-24 and also in 2024-25.
There is no doubt our economy has bounced back strongly, with more Tasmanians in work than ever before, and CommSec ranking us once again as the best performing economy in the country, for the sixth quarter in a row.
However as we’ve seen recently, the COVID-19 pandemic remains an ever-present threat and we know there is more work to do.
That’s why we will continue to deliver our plan to secure Tasmania’s future with our key focus on the health and safety of Tasmanians, while keeping our economy strong and creating jobs, right around the state.
Media release – Shane Broad MP, Shadow Treasurer, 30 July 2021
Gutwein has lost control of the budget
For the first time since 2004, Tasmania has entered a new financial year in net debt.
Shadow Treasurer Shane Broad said today’s Preliminary Outcomes Report shows that Peter Gutwein has lost control of the budget and has no plan to fix it.
“Peter Gutwein is running the largest budget deficit in Tasmanian history,” Dr Broad said.
“The Treasurer has taken the $208 million in net cash and investments he inherited from Labor when he became Treasurer and turned it into $459 million in net debt, it is simply unbelievable.
“Mr Gutwein has overseen a downgrade in the Moody’s credit rating and deteriorating operating position.
“He must now be honest to Tasmanians. He must admit he has lost control of his budget and use the August budget to outline a way to fix the mess he has created.”
Dr Broad said that only a matter of weeks ago, Peter Gutwein reassured the House that he would stick to his timeline to get the budget back to surplus.
“Today he broke a promise to Tasmanians that was only a few weeks old.
“Our state cannot afford to continue to ride the wave of unexpected GST revenue as a form of keeping the budget in the good.
“As Tasmania’s net debt grows, so too does the list of failed infrastructure projects, the public health waitlist and the public housing waitlist.
“Premier Gutwein must address the issues in the Budget, otherwise he risks not only putting Tasmania in a catastrophic debt position, but failing to deliver the much-needed funding to vital services across the state.”
Media release – Tasmanian Small Business Council, 30 July 2021
Gutwein Must Use Budget Boost To Support Small Business
Today’s better than expected budget update shows that the Tasmanian Government has the capacity to do more to help struggling small businesses, according to Robert Mallett from the Tasmanian Small Business Council.
“It’s good to see the budget is in much better shape than expected just a few months ago,” Mr Mallett said.
“But the reality is that with recent lockdowns in New South Wales and Victoria, many Tasmanian small businesses are doing it tough.
“The Federal Government is supporting New South Wales and Victoria as a result of their respective lockdowns, but the flow on effects have savaged many Tasmanian small businesses.
“The Tasmanian Government has made some welcome steps forward with initiatives like the Holiday at Home vouchers, but not all small businesses in Tasmania will benefit from schemes like this.
“What we need to see is support that is targeted at the entire small business sector to help them weather the storm caused by interstate lockdowns, and lay the foundation for a quick recovery when the lockdowns eventually end.
“The uncertainty of lockdowns is hurting small business confidence and the Preliminary Outlook Report shows that the government has the capacity to do more to help.”
