Media release – Jeremy Rockliff, Premier, Michael Ferguson, Treasurer, 12 September 2024

Delivering the 2030 Strong Plan for Tasmania’s Future

The 2024-25 Budget drives the delivery of the 2030 Strong Plan for Tasmania’s Future and ensures Tasmania continues to be the best place to live, work and raise a family.

The 2024-25 Budget secures record investment in cost-of-living relief, health, housing, education and infrastructure – ensuring that the 2030 Strong Plan for Tasmania’s Future will be delivered over the next four years.

Premier Jeremy Rockliff said the Tasmanian Government is making record investments in the things that matter most to Tasmanians and making life more affordable.

“We are delivering record cost of living relief of more than $550 million as we support Tasmanians through the everyday challenge of affordability,” Premier Rockliff said.

“Over the next four years, we will invest a record $12.9 billion into building a better health system, and $9.4 billion into improving our education system.

“Together, our investment in health and education accounts for over 58 per cent of all government spending.

“As part of the Government’s First 100 Days Plan, we have already delivered significant cost of living relief through our supercharged Renewable Energy Dividend and taking action to halve bus fares.

“The 2024-25 Budget goes further to deliver additional meaningful relief on the cost of living for vulnerable Tasmanians, including $211 million for annual electricity concessions, $89.9 million to support pensioners with the cost of local government rates, and $42.3 million for water and sewerage concessions.”

Treasurer, Michael Ferguson, said the 2024-25 Budget continues the Tasmanian Government’s strong track record of responsible economic and financial management, while investing in services and infrastructure, and protecting and supporting vulnerable Tasmanians.

“The Budget continues our record investment into infrastructure with $5.1 billion secured to deliver key job-creating projects. This includes new and upgraded assets across our health system, roads and bridges, and schools,” Treasurer Ferguson said.

“The Government continues to deliver on our $1.5 billion plan to provide 10,000 more social and affordable homes by 2032, with approximately $550 million over the next four years allocated to meet this goal and provide more roofs over the heads of Tasmanians.

“As anticipated, the 2024-25 Budget responds significantly to the Commission of Inquiry, with additional funding of $425 million to support the implementation of all the Commission’s recommendations.

“This investment is in addition to the priority actions that were funded as an immediate response in 2023-24 and the recognition of a $646.9 million liability provision following an independent actuarial assessment of the cost of current and future redress and civil claims for child sexual abuse in state care.

“The investment of $425 million in this Budget will modernise our protective systems and keep our children safe.

“Importantly, it acknowledges the wrongs of the past 40 years, and ensures Tasmania’s children are kept safe and protected from the worst crimes imaginable.”

The Tasmanian Government is prudently and responsibly managing its economy and public finances. As Tasmanians would expect, we will continue to provide effective and efficient public sector delivery while growing our frontline services.

The 2024-25 Budget continues to take corrective actions and charts a responsible pathway back to balance without the savage $2 billion in cuts to services and infrastructure that Labor committed to during the election, which would have destroyed business confidence and led to significant job losses.

Importantly, the Budget continues to promote a business-friendly investment environment, with no new or increased taxes.

The Budget position is forecast to improve to a small deficit of $63.2 million in 2027-28.

The Budget forecasts that Tasmania will continue to have the lowest Net Debt of all states and territories and is forecast to have the third-lowest Net Debt as a percentage of Gross State Product as of 30 June 2025.

The 2024-25 Budget will ensure that Tasmania remains the best place to live, work and raise a family.

Budget documents available here.

Media release – Kristie Johnston MP, independent for Clark, 12 September 2024

2024 BUDGET REACTION

Tasmania’s finances are out of control. Our balance sheet has never looked so grim. The community’s credit card has been maxed out.

The scary news is our debt is forecast to double to a record $8.5 billion in 2027-28. The government says we’ll return to a surplus in 2030 – that’s a big call.

We can’t afford everything the government wants. So, we need to focus on priorities.

We need to take a hard look at the must-haves and decide what can wait. We need more than ever to focus on what matters most to the people of Clark. We’ll dive into the details for the people of Clark over the following days.

But there’s already some howlers:

  • The AFL stadium
  • Money for pork barrelling
  • Continued funding for the racing industry

At the same time the budget efficiency dividend means effective cuts to the vital services we rely on.

Media release – Tasmanian Small Business Council, 12 September 2024

Budget makes doing the cost of business cheaper but misses some big points

‘Initiatives in today’s budget will support small businesses to reduce the cost of doing business but misses out on providing structural reform that will recharge the economy and make the act of doing business less frustrating’, said Robert Mallett CEO of the TSBC.

‘The Energy Audit grants will educate and support small businesses to better understand their energy usage and allow them to make sensible decisions in future infrastructure purchases.

‘Similarly, the interest free loan scheme to support small businesses in investing in energy efficient infrastructure is a positive way of reducing the cost of doing business with their third largest expense, energy.

‘Ongoing support for the TSBC is of course welcome as the task of supporting the sector and placing their concerns to legislators, agencies and stakeholders increases with the complexity of the business environment.

‘Slow progress has been made on the one page tendering document for all tenders under $250,000 but the Minister assures us that this is in progress and we look forward to a rapid resolution to enable more small businesses to take advantage of this efficiency.

‘Disappointing is the lack of any pathway to reform a number of GBE’s and policies which impact on the willingness for small businesses to take a risk, expand their business, build new premises or seek a brighter future.

‘Planning reform should sit high on the list of initiatives to break the uncertainty of small businesses to look to a brighter future and invest in it. TasPorts and TT Line, major gateways for small businesses to export iconic products to the rest of the world, continue to be a major bottleneck to greater growth and prosperity.

Media release – Rebekah Pentland MP, Miriam Beswick MP, 12 September 2024

TREASURER HITS SNOOZE ON ESLAKE’S WAKE-UP CALL

The State Government’s decision to largely ignore the advice of leading economist Saul Eslake will end up costing Tasmanians dearly.

Northern independents Rebekah Pentland and Miriam Beswick say today’s budget ignores the big challenges facing the state.

“The Treasurer has hit the snooze button on Saul Eslake’s wake-up call,” Mrs Pentland said. “There is no sign of the structural change needed to get the budget back on track, with net debt set to hit $8.5 billion in four years’ time.

“As Saul Eslake warns, that figure will be close to $16 billion in a decade if we don’t change course. Meanwhile the state’s path back to surplus is built on some very ambitious assumptions and unfair cuts to essential services.

“Despite Saul Eslake’s warning that ‘efficiency dividends’ are ineffective; the Treasurer is asking departments to find $450 million in cuts. The Treasurer is asking health to cut almost $70 million in one twelve-month period without any guidance.

“If the Government believes there are cuts to make, they should name them up, rather than handballing responsibility to others. We agree a slash and burn approach is not appropriate, but we have to take steps towards budget repair.”

Braddon Independent MP Miriam Beswick is worried future generations will pay for the Government’s lack of budget bravery.

“They’ll be lumbered with enormous interest repayments on spiralling debt. It’s already hard enough to fund essential services, we can’t afford to waste valuable money paying off the state’s credit card.

“I’m disappointed the Treasurer has ignored all of Saul Eslake’s sensible advice, including a more strategic approach to infrastructure spending. Today’s budget also confirms that Tasmania couldn’t afford the election spending spree both major parties went on.

“While today’s budget is a missed opportunity, it’s not too late to adopt some of Saul Eslake’s strategies.

“As independent MPs, we’re committed to budget responsibility and will consult widely on ways to make the state’s finances healthier. We can’t leave the mess for the next generation to clean up.”

NUGGETS OF GOLD IN BUDGET OF HITS AND MISSES

While concerned about the trajectory of Tasmania’s finances, northern independents Miriam Beswick and Rebekah Pentland have welcomed some of the targeted spending initiatives in today’s budget.

“As part of our confidence and supply agreement with the Premier, we put forward some sensible, modest budget bids,” Mrs Beswick said. We’re very pleased to see many of our ideas confirmed in today’s budget, including critical funding for some of the most vulnerable members of our community.

“Additional funding for Neighbourhood Houses, food security programs and homelessness initiatives will do a lot of good. We also welcome the $16 million commitment to a dedicated school improvement program. This was one of our priority requests and we’re proud to see it delivered for school communities across the state.”

Bass Independent Rebekah Pentland says a funding injection for Metro Tasmania is also welcomed.

“We’ve got a long way to go when it comes to our public transport network, but this is a step in the right direction,” Mrs Pentland said. Metro must deliver a more reliable service while supporting its hard-working staff at the same time. We’ll be keeping the pressure on the Liberals to get Metro back on track, including an outcome for its mechanics.

“While we remain critical of the government’s budget approach, it deserves to be commended for listening to some of the quieter voices in the community. An initial look at the budget would suggest crucial community initiatives have been supported.

“We’ll be consulting widely with stakeholders to make sure the devil isn’t in the detail.”

Media release – TCCI, 12 September 2024

Business community calls for budget repair

The TCCI is calling for the Government to do more to get the State’s budget back on track. The call comes following the release of the 2024-25 Budget.

TCCI CEO, Michael Bailey, said that the State’s budget position was unsustainable.

“We are concerned that if the Government doesn’t do more to prioritise budget repair the State’s finances will be cooked,” Mr Bailey said.

“The Government needs to get the balance right. Obviously it needs to fund its election commitments and continue to invest in vital infrastructure and public services.

“However, that doesn’t excuse the Government from doing what’s needed to get the budget back on track. Yesterday, we released our ten principles that we think should guide the way the Government spends money in Tasmania.  Key amongst those is driving greater productivity in the public sector.

“Importantly, we think that the business community and the private sector could and should do more of the heavy lifting when it comes to driving economic growth.  But to do that, the Government needs to get out of the way.

“Red tape, the rising costs of increasingly scarce energy, insurance costs and housing availability are all contributing to a decline in private investment.

“We accept that there are economic headwinds that are out of the Government’s control, but we think that the Government should do more with the levers it has to support the economy and put the budget on a sustainable path.”

The TCCI’s ten budget principles are:

  1. The Independent Review of State Finances report by Saul Eslake and Treasury’s Preliminary Outcomes Report for 2023-24 should be an urgent wake-up call for all Tasmanians about the state of our finances and economy. 
  1. The TCCI has been saying for some time that the Tasmanian budget was in a precarious position and that the current path was not sustainable. 
  1. The TCCI believes that the primary problem is one of runaway expenditure (government revenue is in line with expectations) since the Covid pandemic, with the Tasmanian government failing to rein in expenditure as the crisis passed. 
  1. The TCCI agrees with the broad objectives outlined in Saul Eslake’s report, especially the urgent need to chart a clear path to a sustainable state budget. 
  1. The TCCI believes that this will take some hard decisions by the Tasmanian government to reduce expenditure and to reduce the scope of Tasmanian government activities (TCCI agrees that efficiency dividends and vacancy control are poor ways to target savings), rather than increasing taxation. 
  1. The TCCI also believes that the Tasmanian government must focus on increasing public sector productivity, this is what the private sector would focus on during challenging times and it should be no different for governments. 
  1. The TCCI considers that it has never been more important to stimulate the private sector in Tasmania to invest in wealth-generating activities, the Tasmanian government can do this by providing greater certainty. 
  1. The TCCI and Tasmanian business want to be involved in solutions and are ready to provide ideas to achieve a sustainable state budget, the Tasmanian government must consult beyond the bureaucracy as we would question the merit of the bureaucracy performing surgery on itself. 
  1. The TCCI believes that the Eslake Report also highlights an urgent need for reform of Tasmanian government business enterprises and state-owned companies. 
  1. The TCCI agrees that there needs to be a clear infrastructure priority list developed by the Tasmanian government and improvements in the delivery of major projects. 

Mr Bailey said that the TCCI and the wider business community of Tasmania stand ready to help chart a path back to budget sustainability.


Media release – Josh Willie MP, Shadow Treasurer, 12 September 2024

Rockliff’s horror budget means cuts, job losses and debt

Jeremy Rockliff’s minority Liberal government has delivered what can only be described as the worst budget in Tasmania’s history.

It includes more than 700 forecast job losses, $600 million of health cuts, and $8.6 billion of debt that will burden future generations.

The 700 forecast job losses come on top of the 5,000 already lost since Jeremy Rockliff started government in minority.

The $600 million of health cuts will damage a health system that’s already the worst in the nation.

And the Liberals’ record debt—which is now worse than any other state​—means Tasmania will be spending twice as much on interest as we are on our ambulance service.

It’s a minority government disaster and there is no plan to turn it around. There is no pathway to surplus, no plan to pay down debt, and no plan to improve our essential services.

After 10 years in office, the Liberals have mortgaged Tasmania’s future – and in doing so they’ve destroyed their financial and economic credibility.

Media release – Master Builders Tasmania, 12 September 2024

Budget backs building sector

Master Builders Tasmania has welcomed the release of the State Budget today. Master Builders Tasmania CEO, David Clerk, said the continued support for the High Vis Army was vital to help build Tasmania’s future.

“We welcome the Government’s commitment to a strong building and construction sector,” Mr Clerk said.

“We currently have a building and construction workforce of around 29,000 in Tasmania. But if we’re going to build the $5.1 billion of infrastructure announced in today’s budget, part of the forecast $27 billion infrastructure pipeline over the next 10 years, we will need a workforce of 40,000.

“We’re also going to need a much bigger workforce to build the houses we need. Under the National Housing Accord, Tasmania is expected to build around 5,100 new homes a year, but we are falling well short of that target and we welcome the opportunity to work with the Government to get that back on track.

“By continuing to fund the High Vis Army initiative, the Government is supporting more apprenticeships, more tradies, greater female participation and a better pathway into our industry. Importantly, this funding will also help Master Builders Tasmania develop a new training facility in the north of Tasmania similar to our state-of-the-art facility at Cambridge in the south that has only just opened but is already making a huge difference to upskilling industry and bring more workers into the sector.

“The key focus for the 2024-25 Budget period has to be building more homes. We’re falling short of where we need to be, and we need to work together to fix that. This budget lays the foundation to do that.”


Media release – Australian Nursing and Midwifery Federation Tasmanian Branch (ANMF), 12 September 2024

State Budget 2024-25

The Australian Nursing and Midwifery Federation Tasmanian Branch (ANMF) attended the community lockup today and reviewed the 2024-2025 Tasmanian State Budget papers.

ANMF Tasmanian Branch Secretary Emily Shepherd said the Budget is an expected one.

“Funding allocations have been directed to fulfilling State Budget commitments,” Ms Shepherd said. “It only includes minor additional funding that will not address the chronic understaffing and access and flow demands that continue to plague the Tasmanian Health System.

“While recruitment incentive commitments are retained along with graduate nursing position incentives, there is also an efficiency dividend and intent to reduce public sector fulltime equivalent positions.

“Government representatives assured the ANMF these positions will not be frontline positions or the roles that support them. However, it is still incredibly concerning given all roles within the health sector are currently essential.”

Ms Shepherd said previously committed infrastructure funding is retained.

“But concurrently there is a cap to public sector wages to 3.5% for the first full year from the anniversary date of a new agreement followed by 2.5% per annum the year after.

“Not only does this not represent good faith bargaining, it also doesn’t recognise the competitive environment that recruitment of nursing and midwifery positions is currently occurring in.

“This will not retain nor recruit public sector nurses and midwives in future agreements.”

Ms Shepherd said despite the lack of funding for health there are some minor welcomed commitments which include:

1)            Mayshaw centre health upgrades in the forward estimates
2)            Medical equipment funding to replace ageing equipment
3)            Funding to implement a peer support model to support mental health support for members and access to critical incident debriefing

Ms Shepherd said the ANMF welcomes the Labor motion in Parliament yesterday, amended by Independent David O’Byrne, to convene a consultative committee meeting on 20 September.

“This will meet with Unions and Consumer Groups to discuss where the budget cuts will occur in health and offer the opportunity for a collaborative discussion with respect to impacts and any alternate suggestions.”

Media release – Greater Hobart Mayors, 12 September 2024

Budget funding must result in project delivery

The Greater Hobart Mayors have welcomed the inclusion of funding for the expansion of the Derwent Ferry Service in the State Budget but urged the Tasmanian Government to lift its game on the delivery of major transport projects.

Lord Mayor Anna Reynolds, Mayor Brendan Blomeley, Mayor Sue Hickey and Mayor Paula Wriedt said the Budget included funding for important transport measures, including:

  • $20million towards the Derwent Ferry Expansion Project – a previous commitment from the State Election secured by the Greater Hobart Councils; and,
  • $15million to expand Metro bus services and $14 million to improve recruitment and retention of Metro bus drivers – a strong advocacy focus for the Councils following the government’s short-sighted decision to slash services last year.

While the Mayors welcomed these commitments, they also noted the community is losing patience with the government’s ability to improve the public transport network and progress major infrastructure projects long touted for Greater Hobart, such as the Tasman Bridge upgrades, Northern Suburbs Transit Corridor, Southern Outlet transit lane and the Hobart Transit Centre.

Quotes to be attributed to Hobart Lord Mayor Anna Reynolds:

“With the Budget now delivered, the government needs to be laser focused on restoring and improving Metro bus services while planning for the operation of an expanded ferry network.

“It’s also clear that a significant uplift in investment will be required in the years ahead to ensure our transport system meets the needs of Hobart as a thriving capital city.”

Quotes to be attributed to Clarence Mayor Brendan Blomeley:

“We welcome the Budget commitments to infrastructure projects that will support Greater Hobart’s growth and the changing needs of our communities.

“However we urge the government to double its efforts in delivering major infrastructure and transport projects.

“There are many examples of State Government dragging its heels – we’ve seen this with the Bellerive ferry terminal, it’s been years since the promised Tasman Bridge upgrade, and the protracted realignment of Rokeby Road, just to name a few in Clarence alone.

“It’s time for urgent action to get these projects back on track.”

Quotes to be attributed to Glenorchy Mayor Sue Hickey:

“The state government needs to engage Glenorchy Council on its plans for Bus Rapid Transit and how this applies to the Northern Suburbs Transit Corridor.

“The lack of adequate consultation to date has been disappointing.

“We again reiterate our call for the Tasmanian Government to agree on timeframes and targets for progressing the NSTC, which will provide important clarity to the community, industry and other stakeholders.

“It’s clear that a lot of work is required to progress Bus Rapid Transit but also to support urban renewal along the corridor, including much-needed medium density housing opportunities.”

Quotes to be attributed to Kingborough Mayor Paula Wriedt:

“We are eager to see the State Government provide more dedicated support for active transport and cycling infrastructure across Kingborough and Greater Hobart, and we will continue to advocate for ongoing investment in this area moving forward.

“We also want to see a greater uplift in public transport funding to deliver a network that our communities can rely on and that is safe.

“A credible network provides confidence in the frequency and reliability of services, which hasn’t been the experience for most commuters in recent years.”

Brendan Blomeley is the Mayor of Clarence City Council, Sue Hickey is the Mayor of Glenorchy City Council, Anna Reynolds is the Lord Mayor of the City of Hobart and Paula Wriedt is the Mayor of Kingborough Council.


Media release – Tasmanian Hospitality Association, 12 September 2024

THA welcomes Government’s commitment to revitalising Tasmania’s hospitality sector

In response to today’s state budget announcement, the Tasmanian Hospitality Association welcomes the Government’s significant investment into the future of our state’s hospitality industry.

The budget confirms continued support to the sector’s growth, sustainability and viability, including substantial funding for various impactful programs and initiatives.

Having already followed through with a pre-election commitment in June to protect the state’s frontline workers with a Sentencing Amendment (Presumptive Sentencing for Assaults on Frontline Workers) Bill 2024, the budget locked in several key investments for hospitality:

  • $2.4 million over three years to support the THA’s Hospitality 2030 Vision initiatives
  • $1.3 million in funding over two years for Visitor Experience Training (VXT) Tasmania
  • $3 million over three years for continued support for the Great Customer Experience program
  • $1.5 million over three years towards the Women in Leadership, Mental Health and HOSPO Health programs
  • $1.5 million over three years to ensure Clubs Tasmania can continue to support Tasmania’s community sporting clubs and RSL’s
  • A $500,000 Regional Hospitality Revival Fund

“We are immensely pleased with the government’s dedication to bolstering our hospitality sector,” THA chief executive Steve Old said.

“The funding allocations will significantly enhance our efforts in workforce development and ensure superior service delivery across the state.

“Many operators are coming off an extremely tough winter period, but this funding allows the THA team to continue servicing businesses and helping provide support and advice where needed.

“These investments are not just about economic growth; they reflect a deep commitment to the wellbeing of the thousands of Tasmanians who make our hospitality industry vibrant and welcoming.”

The THA looks forward to working closely with the government and all stakeholders to implement these initiatives effectively and continue to promote Tasmania as a leader in hospitality excellence.

Media release – Rosalie Woodruff MP, Greens Leader, 12 September 2024

Status Quo Budget Fails To Meet Tasmania’s Key Challenges

The 2024-25 State Budget manages to send lutruwita/Tasmania into substantial further debt without addressing the major challenges facing the state and its people.

This is a classic Liberal budget, more of the same we’ve seen for many years. It has no vision and no clear pathway to a kinder, fairer, healthier, and more sustainable lutruwita/Tasmania. And it has its priorities all wrong.

The budget includes hundreds of millions of dollars to fund a stadium, tens of millions of dollars in tax cuts for property investors, and significant grants for property developers. It refuses to make big corporations pay their fair share. Much of this is paid for through further cuts to public services, including a $450 million so-called ‘efficiency dividend’ – including $135 million of cuts in health.

There are serious challenges facing lutruwita/Tasmania – the worsening problems in the health system, the housing affordability crisis, and terrible education outcomes. This budget tinkers at the edges, but does nothing to bring meaningful long-term improvements.

How can this government look at the housing crisis and think it’s OK to set a new target that has even more Tasmanians waiting for public housing? How is it appropriate to maintain dangerous ambulance response times or worsening ED wait times? How can they accept the high number of children at Ashley Youth Detention Centre as an ongoing situation?

Other than the huge expenditure risk they’re taking building a billion-dollar stadium, the Liberals are refusing to do more than deliver the status quo. It’s the Liberals’ last decade of the same budget decisions that has delivered the serious health crisis, rapidly growing homelessness, and an education system that’s not delivering.

There are many big problems facing lutruwita/Tasmania, and they won’t be solved overnight. However, there are things the Liberals can do to turn things in the right direction. It’s time to ditch the stadium, to make big corporations pay their fair share, and to invest in the services our state needs to become a kinder, fairer, healthier, and more sustainable place.

Liberal Budget Another Shocker for Tasmania’s Environment and Climate

The Liberal Government has released another State Budget that prioritises a billion-dollar stadium spend ahead of services for people, and action on the environment and climate challenges.

Tasmanians don’t want a government that stands on the sidelines and watches our climate get hotter, and native species be driven to extinction. Yet this State Budget shows the Liberals have business-as-usual for big corporations and developers as their major priority. There is no response to the biodiversity and climate crises of our time.

The Liberals’ budget continues to subsidise our mendicant native forestry industry. Every day this industry is destroying precious carbon-storing forests and the threatened species that live in them. Meanwhile, this budget allocates the same amount of funds this year to managing the 650 threatened species in this state as they do to an absurd Chocolate Fountain. It’s shameful.

From next year, the Liberals are completely cutting funding to track the Orange-bellied parrot. Time will tell whether we’ll see the extinction of iconic Tasmanian species like the swift parrot, Tasmanian devil, or Maugean skate on the Rockliff Government’s watch.

This is another State Budget where Liberal politicians have put their corporate mates ahead of Tasmanians. The forestry, aquaculture and mining industries continue to trash our environment without even paying their fair share of taxes and royalties.

This budget fails to meet the reality of our climate future.

In recent weeks, Tasmanians have suffered from flooding and severe winds. These kinds of extreme weather events are only going to worsen as carbon emissions continue to drive climate heating. Yet there is only small cheese in the budget ahead of what’s likely to be another record-breaking hot summer. Where’s the additional funding for bushfire management practices, extra fire-fighters and upgrading emergency services equipment?

Just five years ago we faced massive fires, with significant community damage and 96,000 hectares of the Tasmanian Wilderness World Heritage Area destroyed. Despite this recent memory, this budget has precious little in extra funds to protect communities and this island’s unique environment from fire.

When it comes to climate action, the Rockliff Government is required to release their plans for making carbon emissions’ reductions this November, but there is no money to actually implement those plans.

The Liberal Government’s budget has prioritised spending on a billion-dollar stadium instead of the environment that sustains us, or on preparing for the reality of climate extremes. That’s not good enough. The Greens will continue to stand up against this business-as-usual attitude, and against Liberal and Labor politicians’ pandering to the interests of corporations.

Media release – David O’Byrne MP, Member for Franklin, 12 September 2024

2024-25 Tasmanian Budget Wrap

OVERVIEW

“I was hoping for a stronger narrative around budget repair. There are blunt instruments being applied such as efficiency dividends, and a lack of strategic and forensic approach to the overall cost of delivering government services.

“The government’s 10 year fiscal strategy unveiled last year is already in tatters, with many of the fiscal targets breached this year or over the forward estimates.”

“Any notion of a surplus has been abandoned until at least 2029/30, but given the grave state of the budget a surplus would come at the expense of public services and presents a greater risk to the broader economy.”

HOUSING:

“One of the most pressing issues facing Tasmania is consigned to a few pages at the end of the budget, as if it’s some kind of afterthought.”

“With public housing now the responsibility of the statutory authority Homes Tasmania the government gets away with providing a handful of policy statements with minimal financial detail.”

“With the public housing waiting list and average wait times forecast to grow over the forward estimates, this is a statement of failure on the housing crisis.”

“What little detail there is on Homes’ finances shows investment into housing and construction dropping from $109m next year to $71.6m the following year.

“Funding dries up for most of the government’s housing election commitments in 2025 or 2026, such as housing support workers for Jireh House and McCombe House, and the much-needed Rapid Rehousing Boost. The impact of pulling this funding in a year or two will be severe.

“There is no increase in net recurrent cost per dwelling – that is maintenance – despite an ageing social housing stock

HEALTH

“It’s completely unacceptable there are still no plans to improve mother and baby services in Southern Tasmania beyond a few more beds in the Royal Hobart Hospital. These beds are available for mental health admissions only and it’s widely recognised in the medical community this model is not working. Since St Helen’s closed there remains no inpatient option in the south to support mothers and babies with a range of challenges.”

“Further to this, these extra beds are only funded for two years so the future of this limited service is uncertain.”

“As with other infrastructure spending, several important health projects are being delayed despire the urgent need for improved services. These include 27 new mental health beds, Health Centre stage 2 and the already hopelessly delayed Royal Hobart Hospital Redevelopment.

“The digital health transformation has been cut from $210m to 180m and completion has been pushed out to 2028. This will have an impact on the efficiency and effectiveness of our health system.

COMMUNITY

“I was pleased to see a number of important projects and key community organisations receive funding. These include Hamlet, Dress for Success, the Bike Collective and the Public Trustee for their implementation of the Bugg Review recommendations.”

INFRASTRUCTURE AND TRANSPORT

“Spending on a number of road projects is being deferred to reduce spending in the next couple of years, but this is just delaying much-needed upgrades and will likely lead to increased costs.”

“In Franklin the Algona Rd interchange has been delayed by a year and will cost an extra $13m, the Huon Link Rd has been put off a year and stage three of the South Arm Highway has been pushed out two years.

“In the passenger transport section the budget talks about emerging traffic congestion issues, ignoring the fact there has been a serious problem in this area for a decade.

“After several years of embarrassment, the beleaguered Common Ticketing scheme first promised in 2018 has been rolled into a different line item to mask the fact that this important public transport project is still no closer to being delivered after six years of empty announcements.

Decrease in the profiling of investment into passenger transport services from $48m this financial year to just $10m in in 2027-28.

GBEs DIVIDEND POLICY

“The approach by government to see the GBEs as an arm’s length ATM is of great concern given some of their behavior decisions and the risks they have created for the Tasmanian economy and community.”

Media release – Tasmanian Council of Social Services, 12 September 2024

TasCOSS MEDIA RESPONSE: 2024/25 State Budget

The following may be used as direct quotes from Adrienne Picone, CEO, TasCOSS:

  • In the midst of a worsening affordability crisis, we have been delivered a Budget which prioritises investing in projects over investing in people.
  • A Budget that prioritises $5.1 billion of investment in infrastructure, ahead of investments that support people into long term employment, provide safe and affordable homes for Tasmanians on low incomes, and reduce energy bills over the long term, is the wrong Budget and the wrong priority.
  • We were looking to this Budget to invest in structural improvements to affordability issues, such as a broad-based program of energy efficiency upgrades that would drastically and permanently cut energy bills for Tasmanians on low incomes. Instead the Budget once again focuses on short-term relief such as poorly targeted, one-off energy bill payments. Payments which will go to every household, no matter how much they earn, with $12.7 million of financial support going to the wealthiest 20% of Tasmanian households.
  • We welcome the Government’s commitment to deliver all recommendations from the Commission of Inquiry, and particularly those which address the drivers of engagement in the child safety and criminal justice systems. However, most of the expenditure focuses on tertiary interventions and responses to violence against children, rather than providing adequate investment in long term, preventative and early intervention measures that support family and wellbeing.
  • The Government delivered on its commitment to an indexation approach for the community services industry, which goes some way to addressing cost increases.  We now need to engage with TasCOSS members to understand what this indexation increase will deliver and whether it addresses the years of underfunding combined with increased demand and increased costs of doing business.
  • A recent survey of TasCOSS Members revealed that due to inadequate funding, 72% were planning to make changes or reduce service delivery to Tasmanians. Many have already started making these cuts.
  • This means more Tasmanians missing out on support to get stable housing, to nurture their children’s wellbeing, or to acquire the skills they need for secure employment. These are the kinds of investments that set our state up for future success.
  • As the community services industry calls for fairer funding to ensure Tasmanians don’t miss out on essential services, the Government is on track to pay $1.36 billion on its escalating debt.
  • There were some welcome smaller scale funding announcements in this Budget for mental health, NILS, LGBTIQA+ Tasmanians, four new Child and Family Learning Centres, but overall, this Budget hits the wrong target by prioritising projects over people.

Media release – Youth Network of Tasmania (YNOT), 12 September 2024

State Budget 2024-25

The following can be used as direct quotes from Tania Hunt, CEO, Youth Network of Tasmania (YNOT).

“While there are welcome measures in today’s state budget, the government continues to take a short-term approach to funding vital services in the youth sector and Tasmania’s community service industry more generally.”

“We know this approach impacts our sector’s ongoing ability to provide the services our young people need to live the lives they want to in our state.”

“We welcome the announcement of funds set aside to ensure Tasmania can realise the Commission of Inquiry recommendations. To succeed at this, everyone in our state will need to contribute to the fundamental cultural change required to keep children safe in our communities.

“We look forward to seeing the detail of how these funds will be spent and note the essential role the community service industry has in challenging and transforming cultural attitudes and beliefs that perpetuate harm.”

Media release – Dr Michael Lumsden-Steel, President of the Australian Medical Association, (AMA) Tasmania, 12 September 2024

AMA TASMANIA CALLS FOR TAX REFORM TO HELP FUND ESSENTIAL HEALTH SERVICES

AMA Tasmania notes the health budget provides for new investment to pay for election promises, but not much more for existing services that are struggling to deal with growing demand pressures.

Health services are not immune from cuts as the Department of Health will have to find $134.9 million in savings across its services over the next three years.

Worryingly, there is only a 1.7% increase in recurrent funding from this financial year to the next. That is well below inflation and will mean there are more cuts on top of the efficiency dividends to health coming.

We can’t afford cuts to any part of the health system when it is already struggling to meet demand.

While some improvement in patient flow is occurring in our hospitals, ambulance ramping continues, patients are still spending too long in emergency departments, diagnostic services are overloaded, outpatients are over booked, and elective surgical procedures are being cancelled.

Health needs significantly more resources to build the new infrastructure it requires, develop new models of care, and fund the staffing involved in running the services within them.

The time has come for tax reform to help fund the services Tasmanians need and expect.

While pleased the government has honoured its commitment not to tax health services through the introduction of payroll tax on your local general practice, we are disappointed this budget does not have any significant changes to increase revenue.

We understand raising revenue is politically difficult; that’s why the AMA in Tasmania is calling for politicians to set politics aside and support broader tax reforms.

AMA Tasmania agrees with Saul Eslake’s call for a more comprehensive discussion on how to fund essential services like healthcare sustainably, and that ensures everyone contributes fairly.

Healthcare must be funded to meet demands, not at below CPI growth, let alone below health CPI growth.

This is a conversation that all Tasmanians need to be open to having with their political leaders.

These changes could lead to a more efficient and equitable healthcare system, and the AMA Tasmania stands ready to work with the current government to make the necessary changes.

Because frankly, right now, we are not doing enough, and patients are suffering as a result.

Even though the Tasmanian government invests 32% of its annual budget into healthcare, and over $3 billion annually, it is not enough.

With Tasmania’s most vulnerable population – our older demographic, patients with chronic disease, low income, poor health literacy, and those without any capacity to explore private health care options – there is always more to do.

The problem is that everything in health comes at a great cost. The result is that investment is often in piecemeal packages linked to political promises and election cycles but not necessarily aligned to meet today’s needs or the future.

To meet the healthcare demands of Tasmania, we need the healthcare workforce and the leaders to drive innovation, as well as the medical equipment, electronic medical records, IT support, and infrastructure around Tasmania necessary to deliver patient care.

That’s why the AMA has called for major health projects to be delivered over the next ten years- by 2035, not a thirty underfunded masterplan.

We must create subacute, non-acute, and aged care beds so patients can be discharged from our three large acute care hospitals. This will free up those beds so patients can be transferred from emergency departments and have their surgeries without being cancelled.

This noticeable struggle to keep up with necessary public healthcare infrastructure development in Tasmania is further compounded by the collapse of private healthcare infrastructure developments such as the co-located private hospital in Launceston and the closure of the St Helens Hospital in Hobart.

A strong private system is an asset to the public system. For this reason, we welcome the government’s investment in beds at the Launceston Hub.

The $649.6m in this year’s budget in hospital and health infrastructure investment projects like the Older Persons Mental Health Facility at St Johns Park and Burnie Hospital Masterplan as well as the continuing investment in ICT is welcome. However, it is not enough.

Other states have built new hospitals that enable innovative healthcare delivery and attract and retain staff in the time we have built one tower of the RHH and spent hundreds of millions of dollars trying to renovate and retrofit expanded services like the ICU and emergency department projects.

The costs that are not quantified and rarely spoken of publicly are the costs to patients and patients’ families, the lost workforce productivity, the delays in educational support, and the morbidity and mortality when patients experience delays in being treated in our healthcare system.

Investments in the health workforce are just as crucial.

Tasmania has an unsustainable reliance on locum doctors, agency nurses, and other healthcare workers. We need to rebuild the morale, leadership, pride, and confidence that our healthcare workers have in the government leadership to fund the healthcare system that Tasmanians deserve.

The investment the government has made in the Salaried Medical Practitioners agreement goes a significant way to help us to be a more attractive destination for doctors. We need to see a similar commitment now for our rural and visiting medical practitioners.

It is good to see the $100,000 GP settlement allowance which will see up to eight GPs commit each year to working in general practice in Tasmania for a minimum of five years.

The diagnostic and investigation capacity in the public system needs significant investment and we welcome the $8m set aside to help manage demand pressures in these areas.

Some will argue that with Tasmania’s debt problem heading into crisis territory, the state cannot afford to invest more in health infrastructure and services. The problem is that we cannot afford not to, either.

Media release – Mental Health Council of Tasmania, 12 September 2024

Budget lacks long term commitment to community mental health sector

Thursday’s state budget does little to provide certainty or ensure the ongoing viability of Tasmania’s vital community mental health sector.

Mental Health Council of Tasmania CEO, Connie Digolis, said community managed mental health organisations were plagued by short-term funding agreements, which amplified serious workforce issues.

“Our members across the community managed mental health sector have been telling us for many years that a combination of short-term contracts and long-term underfunding makes it is nearly impossible for them to offer job safety and security, impacting their ability to attract and retain staff. The one and two year commitments for our sector in this budget only perpetuates these problems.”

She said that longer contracts would provide certainty and help to increase the viability of services and availability of vital community-based supports that so many Tasmanians rely on.

“Community mental health organisations and their staff deserve the same level of certainty that their public sector counterparts enjoy. The supports they provide aren’t just a ‘nice-to-have’ luxury. They are essential, supporting thousands of Tasmanians to manage and stay on top of their mental health, participate in their community, live their best lives, and stay out of our hospitals.”

The Premier in parliament on Wednesday acknowledge the “enormous challenge… to the mental health and wellbeing of communities across the globe and in Tasmania.” But Ms Digolis said the solution wouldn’t come from beds alone.

“While having modern and appropriate facilities are important in the delivery of top-quality mental health care in our state, the significant increases in mental health concerns we seeing aren’t due to a lack of beds in our hospitals and acute mental health services. These increases are, however, directly related to underinvestment in prevention and early intervention.”

“A ‘strong plan’ for the future needs to empower all Tasmanians to thrive. If our government is serious about wanting us to thrive, then they must investment in long-term supports and services that help people be and stay mentally well, and out of hospital.”

Media release – Australian Education Union Tasmania Branch, 12 September 2024

SCHOOLS CANNOT AFFORD AUSTERITY BUDGET

Tasmania’s educators have slammed the 2024-25 State Budget’s gross failure to act on the crisis facing our schools, colleges and TAFE campuses.

“Minister Palmer and the Premier had an opportunity to send a positive message to educators at a time when morale is at rock bottom and record numbers are leaving the profession. Instead, they’ve turned their back on them,” said David Genford, Australian Education Union Tasmania Branch President.

“After enduring a decade of inequity and neglect, educators are now being faced with further cuts. Educators have been left in the dark about how ‘efficiency dividends’ will be applied, or where. This couldn’t come at a worse time, with educator morale at an all-time low.

“This Budget fails to address educators’ concerns. Nothing to address rising violence in classrooms, no investment in TAFE, no plan to fix the staffing crisis crushing our classrooms, or to implement the recommendations of the Education Review.”

“The ongoing staffing crisis has led to cut classes, crowded classrooms and unsafe workloads pushing educators past the breaking point. Psychological injury claims have increased 32% for teaching staff and 40% for other educators across DECYP.”

“This is a shocking indictment on a Government failing in its duty of care to students, educators and families, with no plan for change.”

“Educators are being forced to leave the state for safer workplaces and better supports on the mainland, or abandoning the profession altogether. It is heartbreaking to hear from educators no longer able to imagine a future in the careers they love.”

“Educators hoped that Minister Palmer’s willingness to meet and hear their solutions to the crisis in our schools reflected a change of course from her predecessor. Those hopes have been squashed.”

“Four years ago, 1 in 8 teachers planned to leave the profession before retirement. Today, it’s 1 in 3. Tasmania’s educators can’t afford another decade inequity and neglect. The Premier and Minister are asleep at the wheel. Our schools don’t have time to wait for action.”

“Educators will fight to secure the resources and supports required to fix this crisis, even if we have to drag the Rockliff Government kicking and screaming to the table.”

“This is an ideologically-driven budget from an out-of-control Treasurer. Not content with slashing half a billion dollars from services, the Treasurer is now proposing to raise his chaotic public sector wage cap from the grave.”

“With no plan to fix the damage being done in our schools, we’re now calling on the opposition and Tasmania’s crossbench MPs to use their vote to block further cuts to education and  wage caps.”

MPs who signed the AEU’s public pledge to defend public education during the 2024 State Election include Labor, the Greens, as well as key crossbenchers Craig Garland MP (Braddon), Miriam Beswick MP (Braddon), David O’Byrne MP (Franklin) and Kristie Johnston (Clark).

The AEU’s 2024-25 State Budget submission identified priority areas for investment, including:

  • Delivery of 100% of the minimum Schooling Resource Standard (SRS) to every public school and college – zero Tasmanian schools receive the minimum funding level
  • More in-class support for teachers – additional teacher assistants, support teachers and education support specialists (ESS) and extending Diploma-level Education Support Specialist career pathways to all educators to overcome the financial barriers to becoming teachers
  • Ratios of 1 FTE for school psychologists and social workers for every 500 students
  • Increased funding and in-class support for disabled students and/or students requiring educational adjustment
  • Ending unpaid stand down for education support personnel (support staff) to deliver job security and increase retention
  • Increased resourcing to Tier 2, Tier 3 and Tier 4 learning programs and extending Tier 4 programs into colleges

Media release – Shelter Tas, 12 September 2024

State budget delivers on election housing commitments, targeted investment still needed

“Shelter Tas welcomes the State Government’s continued investment in social and affordable housing in today’s Budget, and the delivery of its housing election commitments,” Shelter Tas CEO, Pattie Chugg said.

“Tasmania is in the midst of a housing crisis, and we know that increasing rents are a major contributor to cost-of-living issues for our communities. Housing prices and rental costs are growing much faster than people’s income, with the worst impacts on those who can least afford higher prices. Therefore, Shelter Tas’ key ask for this Budget is to increase the supply of social and affordable rental homes, which is the best way to prevent housing stress and homelessness.

“We support the government’s ongoing commitment to build and acquire 10,000 homes by 2032 with a $1.5B funding package and the implementation of the Tasmanian Housing Strategy 20232043. Shelter Tas and our members have welcomed this nation-leading investment in social housing, and we now need to ensure that the promised homes are on track to be delivered on time and to those most in need,” Ms Chugg said.

Following ongoing advocacy, Shelter Tas is pleased to see secure funding provided for a range of essential frontline services in today’s Budget, including:
• Safe Space, who provide overnight accommodation for those sleeping rough. $450,000 per year for two years will mean more support workers at each of the three Safe Space sites in Hobart, Launceston and Burnie.
• Additional funding for domestic violence shelters Jireh House and McCombe House.
• $1.2M to support women experiencing or at risk of homelessness at the former Bethlehem House site.
• Support for older Tasmanians experiencing homelessness with $20M for Wintringham to build more homes in the north and northwest of the State.
• Increased funding for Shelter Tas so we can continue our commitment to strengthen and lift the capacity of the housing and homelessness sector.

Shelter Tas acknowledges there are significant current efforts across sectors to address housing and homelessness needs. Yet major challenges persist, with a highly competitive private rental market and rising rents relative to incomes. 4,745 households remain on the social housing waitlist, and homelessness services and community housing providers continue to see increased demand for assistance.

“In the current housing crisis we have seen homelessness in Tasmania increase by 45% between 2016-2021. This concerning rise in the number of Tasmanians without a safe and secure home requires an immediate response, and we propose funding for homelessness services be increasing by 20%. These services are on the front line of the housing crisis, facing elevated pressures and high levels of demand. This essential funding will enable services to help more families move out of cars, tents, and hotels and into secure permanent housing,” Ms Chugg said.

This 20% increase in funding would support the current services that assist women and children escaping domestic and family violence, and young people experiencing homelessness, with a call for additional support for these two groups detailed in Shelter Tas’ budget submission for 2024-25.

“In 2023 Shelter Tas commissioned the report Somewhere to Go: Meeting the housing needs of women and children in Tasmania which shows that women and children are bearing the brunt of the housing crisis, with the rate of homelessness amongst Tasmanian women increasing by 50% between 2016 and 2021. Our research also estimates that each year 933 Tasmanian women are returning to a violent partner or entering homelessness after experiencing family violence due to a lack of housing.

“We are also highly concerned at the increasing levels of youth homelessness and the barriers faced by young people who need appropriate and affordable rental housing. Young people are the age cohort most affected by homelessness, with the 2021 ABS Census reporting that 39% of Tasmanians experiencing homelessness were aged under 24,” Ms Chugg said.

Evidence also shows that experiencing homelessness early in life increases the risk of homelessness in later life.

“Conveyancing revenue (Stamp Duty) remains strong at $350.7 million, although it has declined from last year’s record amount. Shelter Tas would like to see stamp duty income dedicated to muchneeded social housing and homelessness services, to build safe, inclusive thriving communities across the state. Every house and every dollar counts when so many people are missing out.

“Shelter Tas and our members want to see housing at the centre of Government decision-making, but not just any housing. The priority needs to be affordable housing that matches the needs of Tasmanians who are doing it tough and feeling the impacts of the housing crisis. We need to ensure that the target of 10,000 homes makes meaningful progress towards eliminating homelessness,” Ms Chugg said.

Media release – various groups, 13 September 2024

Just Healthy Families Funding Welcomed

Tasmania Legal Aid, Women’s Legal Service and Hobart Women’s Shelter today welcomed State Budget funding for the Just Healthy Families Program.

Just Healthy Families is Tasmania’s first Health Justice Partnership supporting women and children across Tasmania by embedding legal help into healthcare services and teams. The partnership includes the Women’s Legal Services Tasmania, Tasmania Legal Aid, and the Hobart Women’s Shelter, as well as partners in education and health services.

Tasmania Legal Aid Director, Kristen Wylie said the Just Healthy Families Program, funded for $1.2 million for the next four years, provides easier access to legal advice for those impacted by family violence.
“This program saves lives and helps the State’s most vulnerable women and children,” Ms Wylie said. “Over two years it has assisted women with more than 5,000 legal problems, including family law, child safety, family violence, property, housing and civil matters. It has reached women in regional and remote areas of Tasmania where services are often scarce or limited.”

Yvette Cehtel, CEO of Women’s Legal Service Tasmania said: “This is a truly collaborative and holistic program that improves the access of women and their children to legal supports in place based settings where they are comfortable and safe. Continued funding will plug a gap in the legal assistance sector where previously these people were not accessing legal services. It will allow us to continue to deliver services across Tasmania in less formal settings.”

CEO of Hobart Women’s Shelter, Janet Saunders said that having access to legal services were not just a resource, but a lifeline for women experiencing homelessness.

“Access to these supports empowers them to navigate complex systems, from securing safe housing, economic security and protecting their children,” she said.

Ms Wylie said the extension of the JHF program will continue to have measurable impacts on the lives of victim survivors of family violence by removing barriers associated with accessing legal assistance, including cost and location.

“We welcome the Government’s investment that provides for continued protection of some of the most vulnerable in our community.”

ASHLEY YOUTH DETENTION CENTRE DUTY LAWYER SERVICE TO PROVIDE IMPROVED ACCESS TO LEGAL SERVICES

Tasmania Legal Aid today welcomed State Budget funding for the delivery of a Duty Lawyer Service into Ashley Youth Detention Centre.

Tasmania Legal Aid Director Kristen Wylie said the Ashley Duty Lawyer Service, funded over four years as part of the response to the Commission of Inquiry recommendations, was key to ensuring children and young people have access to legal advice and representation.

“The duty lawyer service will provide onsite, free, face-to-face legal advice and representation services for children and young people in detention, and will deliver efficiencies in bail applications and court appearances,” Ms Wylie said.

Associate Director of Criminal Law at Tasmania Legal Aid Rebecca Lancaster said access to legal assistance, bail advice and representation is crucial for ensuring that the justice system works effectively for everyone.

“Many of the children and young people in Ashley are not there because they have been convicted of a crime, but because they on a remand and may be awaiting bail plans,” Ms Lancaster said.

“Many don’t meet the conditions for bail including having a home address, while others may be waiting on delays with the resolution of their court matter.

“No child should be detained because of lack of access to legal services, and our duty lawyer program will help address these issues. Importantly, the service will also provide an additional layer of oversight, offering more protections for children and young people who may need to report events in the centre, in a private and secure environment to a lawyer.

“We welcome the funding and look forward to implementing this program.

“We are optimistic about the impact that greater access to legal services will have not only on children and young people in AYDC, but their families, support services and the broader community.”