Media release – Michael Ferguson, Treasurer, 15 August 2024

Preliminary Outcomes Report 2023-24 shows the Government’s focus on cost-of-living relief, COI and frontline workers

The Tasmanian economy continues to grow and now maintains high levels of employment. This is thanks to the strong economic focus of the Tasmanian Liberal Government in partnership with Tasmanian business. Our gains are challenged by a weakening national economy and stubbornly high inflation – so we will continue our focus on the future.

The Preliminary Outcomes Report for 2023-24 varies materially from the estimates published in the 2023-24 Revised Estimates Report following significant investment in cost-of-living relief measures, recruitment of frontline workers and funding for claims of child sexual abuse stemming from the past 40 years. The 2023-24 Preliminary Net Operating Balance is a deficit of $1,505.8 million.

The Preliminary Outcome Report for 2023-24 has been significantly impacted by a range of factors, the most significant being the accounting recognition of the provision for claims for historical sexual abuse, through both the National Redress Scheme and civil litigation.

This provision, which is based on independent actuarial advice, has been assessed at $649.6 million as at 30 June 2024, which is an increase of $571.2 million from 30 June 2023. This has a significant one-off impact on the financial results for 2023-24 and is the first time the Government has recognised an independently verified estimate of the cost of legal claims related to historical sexual abuse in State care.

The Government recognises the enormous impact institutional abuse has had on survivors, their families and their communities and the Government remains committed to keeping children safe and righting the wrongs of the past 40 years.

This recognition of claims for historical sexual abuse is in addition to the significant provisions in the 2023-24 State Budget and the 2023-24 Revised Estimates Report in response to the Government’s commitments to implement the findings of the Commission of Inquiry and set aside an additional $240 million over the next three years.

The increase in employee expenses recognises the significant investment the Government is making in the recruitment of front-line workers, including in health, education and law enforcement and in the delivery of essential services.

Tasmania has not been immune from the national economic headwinds and the Government has implemented a range of measures to cushion the cost-of-living impacts for Tasmanians. The Preliminary Net Operating Balance result includes $64.7 million for the Renewable Energy Dividend and $24.3 million in Energy Bill Fund Relief, both of which provided direct assistance to Tasmanian households and businesses.

It is pleasing to note that the Report shows that the Government has achieved the second strongest year of infrastructure delivery on record, with an estimated total investment of $921.0 million in 2023-24, with work continuing apace on the $786 million new Bridgewater Bridge, which is on track to be completed in mid-2025, together with many other roads, health, education and other capital investments.

Preliminary Net Debt is estimated to be $3,528.1 million as at 30 June 2024, very close to the amount forecast in the Budget Papers – which reflects the Government delivering the services Tasmanians need, and providing the infrastructure upgrades that will support future economic growth.

The Government will continue to deliver on its 2030 Strong Plan for Tasmania’s Future to ensure economic growth alongside sensible debt management.

The Government remains committed to the decisions made in the 2023-24 Budget, the delivery of our savings measures and to look for ways to deliver services to the community more efficiently. The Budget position still reflects the impacts of the COVID-19 pandemic, with the estimated impact of the pandemic between $1.5 billion and $2 billion.

The new Fiscal Strategy that was introduced as part of the 2023-24 Budget is an important part of the Government’s plan to rebuild Tasmania’s fiscal buffers.

The final outcomes for 2023-24 will be published in the Treasurer’s Annual Financial Report by 31 October 2024.

Treasurer Michael Ferguson last week said that the Government has always been upfront about the budgetary impact that the recommendations stemming from the Commission of Inquiry will have.

“It will hurt the budget, and this will be expensive, but we will need to do it,” Treasurer Ferguson said.

“Any funds paid to implement the recommendations will be spent to keep kids safe, have restorative practices within our departments, and provide justice to those who deserve it.“

The Treasurer said that while this adds additional pressure to the Budget, the Government has committed to righting the wrongs of the past 40 years.

“I am prepared to cop any and all criticism that results from doing the right thing in our Budget responses.”

Vica Bayley MP, Greens Treasury spokesperson, 15 August 2024

Budget Blowout Should Scuttle Stadium

The Liberals’ massive budget blowout should be the last straw for their billion-dollar Hobart stadium.

The stadium was already a bad idea when this year’s deficit was forecast at $300 million – especially given the need for increased investment in health, education, and housing. But with the budget now another $1.2 billion worse off, bulldozing ahead with this project would be absolutely cooked.

The Liberals have spent the past two years trying to pretend we can afford a stadium. This was despite signing Tasmania up to a dud deal with the AFL that made taxpayers responsible for every dollar of budget blowout for the project, and failing to secure GST exemptions for $240 million federal government funding.

Arguing we can afford a billion-dollar plus stadium in the face of a $1.7 billion increase in debt is as ludicrous as it is reckless. Yet both Liberal and Labor politicians continue to support this project.

If they had any sense, the Rockliff government would take a look at the books, use their common sense, and scuttle the stadium. The alternative is yet more cuts to the areas most important to Tasmanians, like health, schools, and affordable housing – and we can’t have that happen.

Media release – Josh Willie MP, Shadow Treasurer, 15 August 2024

Liberal-Lambie Coalition have completely lost control of the budget

The Preliminary Outcomes Report showing a budget deficit of $1.5 billion is further proof that the Liberal-Lambie Coalition have completely lost control of the budget.

With a budget deficit closer to two billion than one, and record net debt of $3.5 billion, there really is no way for Treasurer Ferguson and the Liberals to spin what a disaster this budget is.

Yes, it is very important that we fund the Commission of Inquiry redress and implementation, but it only accounts for around half of the budget blowout. It is appalling that Treasurer Ferguson it is using this as a screen for his incompetent budget management.

Tasmanians will be rightly wondering why they have nothing to show for this budget mismanagement. Except for an economy that is flatlining, public services at breaking point, and planeloads of working age Tasmanians leaving the state for better opportunities elsewhere.

Our health system is falling apart, education outcomes are lagging the nation, we are in the middle of a housing crisis and crucial infrastructure projects like the Spirits are significantly delayed and outrageously over budget.

The budget deficit is now nearly five times worse than at the height of COVID. Tasmania can’t afford the Liberal-Lambie Coalition.