The 2025-26 State Budget was tabled in Parliament today.

The Tasmanian Government claimed it continues a “strong record” of providing for those in need while continuing a pathway to surplus. Objectively, however, said pathway remains unclear.

The Labor Opposition labelled it the “worst Budget ever” with total debt heading towards $11B.

The Greens said the proposed ‘Efficiency and Productivity Unit’ would simply be a razor gang making cuts to public services.

Other crossbenchers were also unimpressed. Andrew Jenner (JLN, Lyons) accused the Government of “spending money it doesn’t have and failing to prioritise the money that it does.”

Northern independent Miriam Beswick (Braddon) and Rebekah Pentland (Bass) said the Budget papers Tasmania is in the midst of a fiscal crisis.

“The next generation of Tasmanians will be left to pay the price,” said Beswick.

Pentland observed that: “until we get the basics right, a majority of Tasmanians will continue to question whether we can afford a brand-new stadium at Macquarie Point.”

Kristie Johnston (independent, Clark) was disappointed that the Government is not seeking additional revenue from mining and resource royalties and fairer taxes “instead of cutting frontline jobs, essential services and a fire sale of our GBEs and Crown land.”

The Youth Network of Tasmania said the Budget “fails to deliver the bold, future-focused investment urgently needed in youth housing and homelessness.”

Tasmanian Chamber of Commerce and Industry said the level of debt and deficit outlined by the Government in the budget isn’t sustainable. “There is a massive looming budget blackhole and we can’t let the state’s finances get sucked into it,” said CEO Michael Bailey.

Shelter Tas welcomed the Government’s continued support for social housing but noted that actual delivery of the ‘10,000 homes by 2032’ plan is not meeting either targets or community need.

The Small Business Council said that a proposed Small Business Start-up Permit is good news for intending entrepreneurs.

The Australian Medical Association perceived there is not enough money in the budget to meet increasing demand.

“Rather than set a realistic budget for next year, the budget papers show the government believes a less than 1 per cent increase (0.9%) in the total health budget for 2025/26 and 0.2% increase for hospital services will be sufficient…this will mean either another budget blowout or cuts to vital health services,” said Dr Michael Lumsden-Steel, AMA Tasmania President.

Tasmanian Council of Social Services adjudged the Budget as falling short on the Government’s promise to ‘deliver on the things that matter to Tasmanians.’

“We’re concerned the Government has lost sight of the real issues that matter most to Tasmanians, with billions of dollars spent on hard infrastructure and significant financial capital consumed by cost blowouts and planning mistakes that could have been avoided,” said TasCOSS CEO Adrienne Picone.

“A new stadium won’t help Tasmanians living on low incomes feed their family and get their foot into the housing market.”

Read their full statements below.

Media release – Jeremy Rockliff, Premier; Guy Barnett, Treasurer, 29 May 2025

Building a better Tasmania: now, and for the Future

This Budget delivers on what we said we would do by securing record investment in cost-of-living relief, health, housing, education and keeping Tasmanians safe.

Premier Jeremy Rockliff said the Tasmanian Government is doing what matters for Tasmanians.

“This Budget gets the balance right by investing in our essential services and providing support to those who need it most,” Premier Rockliff said.

“Acknowledging the increasing demand on our health system, the Budget will invest $14.5 billion over the next four years in health – almost $10 million each and every day. This investment includes an additional $880 million specifically targeted at meeting the demand for health services.

“This increase is in addition to our significant investments to attract and retain staff, expand primary care initiatives, deliver more oral health appointments and enhance outpatient access.

“Further, we will build on the strong success of our first four-year elective surgery plan with a $70.2 million investment in implementing our second four-year plan, to ensure more Tasmanians can receive their surgeries sooner.

“The 2025-26 Budget continues our strong record of providing cost-of-living relief to Tasmanians with $550 million in relief measures and concessions.

“Tasmanians are now receiving a $60 credit on their energy bills, supported by our Renewable Energy Dividend. Half price bus fares will be extended for all students and regional routes, and we are continuing to expand the number of healthy school lunches we provide, saving Tasmanian families up to $950 a year.

“Our aspiration for more Tasmanians to realise the dream of home ownership continues through our successful Stamping Out Stamp Duty initiative, while we also double down on our ambitious goal of 10,000 more social and affordable homes by 2032.

“Keeping Tasmanians safe is a priority of our Government, and our $1.7 billion investment into policing and emergency services over the next four years will ensure our police force has the tools and equipment to keep them safe, giving greater confidence to the community.”

Treasurer, Guy Barnett, said the 2025-26 Budget was delivering on the things that matter most to Tasmanians, while providing a sensible pathway to surplus.

“The Budget continues our Government’s strong track record of responsible economic and financial management, while increasing investment in services and infrastructure to levels never seen,” the Treasurer said.

“We will invest $9.9 billion into education, children and young people – an additional five per cent, to ensure our young people and children get the opportunities they deserve.

“To keep our economy growing and Tasmanians in jobs, we must continue our bold agenda to deliver generational infrastructure across the state.

“That’s why the Budget invests $3.5 billion over the next four years into infrastructure projects, including new and improved roads and bridges, hospitals, schools and childcare centres.

“This includes $1.6 billion in roads and bridges over the next four years, $400 million alone over the next financial year, and $692.6 million over the next four years for hospitals, health infrastructure and equipment upgrades.

“The Tasmanian Government also continues to prudently and responsibly manage its economic outlook and public finances.

“By providing Government services in a more effective, innovative way, we can deliver better outcomes for Tasmanians. The 2025-26 Budget focuses on ensuring the services we deliver are as productive and efficient as possible, while maintaining efforts to boost frontline services – as Tasmanians expect.

“This Budget is building a better Tasmania: now, and for the future.”

Find out more about the 2025-26 Tasmanian Budget here.

Media release – Josh Willie MP, Shadow Treasurer, 29 May 2025

The worst budget in Tasmania’s history

On his first attempt, Treasurer Guy Barnett has managed to deliver the worst budget Tasmania has ever seen.

When the Liberals came to office in 2014, Tasmania had $208 million in the bank. Now, after 11 years of Liberal budget mismanagement, Tasmania is staring down the barrel of almost $11 billion worth of net debt.

Today’s numbers confirm what’s been clear for years now – Premier Rockliff can’t manage money.

If you can’t manage the budget, you can’t govern Tasmania.

There’s no evidence of net debt stopping anywhere in the forward estimates – in fact, it’s spiralling further and further out of control.

We’re going to be spending more on interest payments than on ambulances and emergency departments combined.

Every Tasmanian household has inherited a $47,000 mortgage from this government. Tasmanians will be paying down Premier Rockliff’s credit card bill for generations to come, and something needs to be done about it.

Labor has changed, we’ve shown we’re serious about addressing the state’s budget crisis by introducing a bill to cap deficits, introducing legislation to bring forward the next Fiscal Sustainability Report, and outlining the critical first steps toward reining in wasteful spending in our ten-point-plan for budget repair.

It’s clear that Premier Rockliff and the Liberals have given up on trying to fix the budget, and they’ve given up on governing.

The results of having the Liberals in charge for 11 years speak for themselves. Tasmania’s finances have never been worse, and they’ve shredded any budget management credibility they once had.

Media release – Rosalie Woodruff MP, Greens Leader, 29 May 2025

Budget Sets Up Fire Sale To Fund the Stadium

Treasurer Guy Barnett has a delivered a budget that has none of what Tasmania needs for the future, and that looks to set up a huge fire sale to fund the Macquarie Point stadium and this government’s other warped priorities.

While our population continues to increase, and community need grows, spending on critical areas like health, education and housing is flatlining. Rather than making big corporations pay their fair share to fund essential services, the Liberals are looking to make sweeping cuts through their so-called Efficiency and Productivity Unit.

‘Efficiency and Productivity Unit’ is Liberal-politician-speak for thousands of jobs cut and worse services for Tasmanians.

The Treasurer has put an array of government businesses in the frame to be sold off, despite widespread community opposition. He’s also looking to flog off public land and public assets. All this just to try and make up for the huge taxpayer spend on the Macquarie Point stadium. It’s shameful.

The appalling plan the Liberals have outlined in this budget will see Tasmanians paying the price to fund their warped priorities. Privatisation will mean higher power bills, higher bus fares and higher car rego. Public service job cuts will mean health, education and housing outcomes keep going backwards.

This budget is the starkest example yet of just how wrong the Liberals’ priorities are. Tasmanians deserve so much better.

Another Anti-Environment Liberal Budget

Instead of protecting threatened biodiversity, and communities at risk from increasing climate extremes, the Liberals have prioritised a billion-dollar stadium and their big business mates.

Tasmania’s State of the Environment report is a disturbing record of our damaged natural systems, essential to all life. The Liberals have not given anything to fund the urgent remedies recommended. Instead, they’re continuing to prop up Forestry Tasmania and its destruction of critical carbon stores and biodiverse native forests.

As so many native species face extinction, the Liberals have drastically axed funding to threatened species and biosecurity. Even the critically endangered orange-bellied parrot program has been given the chop.

Over summer, we saw bushfires burn more than 100,000 hectares of Tasmania’s northwest. We need to ramp up our response to climate extremes, but this budget has barely a cent towards community resilience and volunteer support.

The Liberal Government’s funding of a billion-dollar stadium and other warped priorities is pushing the Tasmanian environment and climate to catastrophe. The Greens will continue to stand up for the Tasmanian people, environment and climate.

Media release – Andrew Jenner, JLN MHR for Lyons, 29 May 2025

STATEMENT ON BUDGET

Last year’s budget was reckless and irresponsible. This year’s is far worse. This budget does nothing to address our debt crisis

The Government is spending money it doesn’t have and failing to prioritise the money that it does.

This government has once again heroically embarked on an infrastructure splurge, without having the productive capacity to fund it. This is the type of budget that will jeopardise Tasmanians for generations to come.

Media release – Miriam Beswick, independent MHA for Braddon; Rebekah Pentland, independent MHA for Bass, 29 May 2025

NO PLAN TO DEFUSE BUDGET TIME BOMB

Northern independents Miriam Beswick and Rebekah Pentland say today’s budget confirms Tasmania is in the midst of a fiscal crisis.

“The next generation of Tasmanians will be left to pay the price,” Mrs Beswick said.

“The debt and deficit projections contained in today’s budget are alarming. Net Debt is forecast to pass the $10 billion mark in 2027-28. Worryingly the State Government can’t tell us when Net Debt will stop increasing.

“Saul Eslake’s prediction of Net Debt reaching $16m by 2035 is unfortunately looking conservative. If Net Debt as a percentage of Gross State Product is predicted to reach 19.1% by 2029, what will it look like by 2035?

“The cost of paying interest on debt will inevitably impact our ability to pay for essential services. Meanwhile the plan to reduce the size of the deficit relies on ambitious revenue and savings projections.

“Past results make it hard to believe the Government will keep within its budget.”

Bass Independent Rebekah Pentland is worried about what the Net Debt situation will mean for younger Tasmanians.

“I fear that long after the leaders of today have left office, Tasmanians will still be dealing with the consequences of their mismanagement.

“The cost of servicing debt is wasted money and will hold us back for decades to come. It appears it’s already limiting our ability to address key challenges like the housing shortage.

“The goals when it comes to reducing the wait for public housing are extremely underwhelming. It’s like the Government is prepared to accept the status quo and that’s simply not good enough.

“Until we get the basics right, a majority of Tasmanians will continue to question whether we can afford a brand-new stadium at Macquarie Point.”

WELCOME BUDGET SUPPORT FOR CRUCIAL LOCAL SERVICES

Northern independent MPs Rebekah Pentland and Miriam Beswick have welcomed targeted funding in today’s State Budget, delivering wins for local organisations they’ve championed.

Support has been secured for Shekinah House, Camp Clayton, Dial Range and Devonport sports precincts, Beyond the Rainbow, Community Transport Services Tasmania, The Pharmacy Guild of Tasmania and the Local Government Association.

“We advocated for modest funding initiatives that will make a big difference in the community,” Mrs Pentland said.

“I’ve stood alongside organisations like Shekinah House and Beyond the Rainbow because of their life-changing, compassionate work.

“These aren’t just services, they’re lifelines.”

Braddon Independent Miriam Beswick is proud to have secured vital funding for Braddon, including upgrades for Camp Clayton.

“Camp Clayton transforms young lives. They’ve needed this for years, and we fought to get it over the line,” Mrs Beswick said.

Community Transport Services Tasmania will be strengthened to ensure vulnerable Tasmanians remain mobile and connected.

“Transport isn’t a luxury, it’s a necessity, and this funding will keep people independent and remove barriers to employment,” Mrs Beswick said.

The Pharmacy Guild of Tasmania was also recognised in the Budget.

“Pharmacists are critical to our health system, especially in regional areas.”

Mrs Beswick and Mrs Pentland will engage with their electorates in the wake of the budget.

“We will be spending the next week talking to key stakeholders and the general public to gauge their reaction to the budget,” Mrs Pentland said.

Media release – Kristie Johnston, independent MHA for Clark, 29 May 2025

Budget Reaction

We’ve had 11 long years of Liberals mismanaging our economy into this spiralling debt crisis, and still there’s no credible pathway to surplus.

We need more than ever to be making smart investments in our people – education, preventative healthcare, supporting families and investing in infrastructure that creates sustainable jobs, and better social and environmental outcomes.

We should be exploring revenue from mining and resource royalties and fairer taxes instead of cutting frontline jobs, essential services and a fire sale of our GBEs and crown land.

Notably Metro, Tasports, MAIB, Aurora and Momentum Energy are on the chopping block.

I acknowledge positive grants to community organisations such as Troublesmiths, Neighbourhood Houses.

But it’s hard not feel like these are crumbs relative to the slice going to corporate welfare and pork barrelling.

Media Release – Craig Garland, independent MHA for Braddon, 29 May 2025

Is Minister Abetz continuing to mislead the public about stadium funding?

Minister Abetz has repeatedly made threats that if the stadium development is not approved by the Parliament, the state will lose the $240million promised by the Commonwealth Government as part of an agreement it reached last year.

This agreement is on the public record. Titled “Macquarie Point Urban Redevelopment -Federation Funding Agreement – Infrastructure”. There is not a single reference to the stadium anywhere in the agreement.

The agreement states payment of the Commonwealth’s estimated financial contribution is subject to delivery milestones “that are yet to be negotiated”.

That is why I asked the Minister Abetz today in the Parliament if he had been provided with any legal advice, or information by the Commonwealth to confirm the $240 million would be withdrawn if the stadium doesn’t go ahead. His response was “we can come to our own conclusion on this”. He went on to say he didn’t have any legal advice or specific information on this and referred, vaguely, to previous discussions between the Prime Minister and the Premier.

This $240million funding has been put forward by the State Government as a lynch pin to the Macquarie Point Stadium being built. I would expect the State Government to have a very clear understanding about the terms and conditions they need to satisfy to ensure they receive that money.

Minister Abetz has a duty to make sure his public statements are accurate and honest. His assertion, as a fact, that the $240 million in Commonwealth funding will be lost if the Macquarie Point Stadium does not go ahead to on this issue are highly contestable, at best. At worst, his statements are a reckless misrepresentation of the true situation in desperate attempt to influence public and political opinion on this hugely significant issue.

I call on the Premier to come clean about the exact discussions he has had with the Prime Minister about this money, and whether he has been told, that the $240 million promised by the Commonwealth will be forfeited if the Macquarie Point Stadium is not approved this year, before tabling the stadium enabling legislation.

Statement – Tania Hunt, CEO Youth Network of Tasmania (YNOT)

Youth Peak Comments on 2025-26 State Budget

For the most part, today’s State Budget is a continuation of the status quo for our sector.

While we welcome investment in the state’s education system and advancing the Commission of Inquiry recommendations, the Budget fails to deliver the bold, future-focused investment urgently needed in youth housing and homelessness.

We acknowledge the Government’s commitment to another four years of funding for the Youth Week Tasmania small grants program. This investment provides $50,000 per year to deliver and promote the state’s largest annual celebration of young people.

Young people are increasingly being asked to provide their ideas and views on a wide range of government policy development processes. YNOT is encouraged to see a modest funding commitment towards the development of a statewide Youth Participation Framework to support meaningful, consistent and best practice youth participation and engagement across government, community and private sectors in Tasmania.

“…this is our life and our right to speak up on what we believe should happen. As young people we are constantly told that our opinions and voices matter yet our ideas are not taken into account as we are ‘too young’, ‘not mature enough’ to make decisions, then our opinions are completely disregarded and our voices are silenced.”

~ 2025 Tasmanian Youth Forum participant.

Media release – Tasmanian Chamber of Commerce and Industry, 29 May 2025

TCCI calls for budget savings as blackhole looms

The TCCI is concerned by what has been revealed in today’s State budget.

TCCI CEO, Michael Bailey, said the level of debt and deficit outlined by the Government in the budget isn’t sustainable.

“There is a massive looming budget blackhole and we can’t let the state’s finances get sucked into it,” Mr Bailey said.

“It’s clear that the Government needs to rein in spending in a sensible and focussed way. The state simply cannot go on living beyond its means and the Government is going to have to show some courage to get the budget back under control.

“For many years there has been a problem in managing costs within Government, it is not so much a revenue problem as it is a problem with managing expenses.

“In recent years, the final budget result each financial year has proven to be much worse than the budget estimate. At the very least, the Tasmanian Government needs to at least stick to its budget and ensure it shows the fiscal discipline to make sure the final result is not worse than the already significant deficit forecast for 2025-26.

“Every Tasmanian should now be very concerned at the level of deficit and forecast public debt. The Government is maxxing out the credit card and it will be the next generation having to pay the bill; is this the legacy that we want to leave?

“We do welcome the Government’s focus on supporting investments that will boost the economy and help improve budget sustainability. In particular, we welcome the Government’s continued support for, and investment in, Marinus and the North West Transmission Development, helping to unlock billions of dollars of investment, create jobs and drive economic growth, which will ultimately help with budget repair.”

Media release – Shelter Tas, 29 May 2025

Housing a welcome focus in the State Budget, target investment still needed

“Investment in social and affordable housing is the foundation for building our community, and Shelter Tas welcomes the State Government’s continued investment in this essential infrastructure contained in today’s Budget,” Shelter Tas CEO, Pattie Chugg said.

“We acknowledge and support the government’s Tasmanian Housing Strategy 2023-2043 with a $1.5B funding package to build 10,000 social and affordable homes by 2032, including half a billion dollars for the next four years announced today. Yet, two years into the strategy, the proportion of social housing being built is not meeting targets or community need. Our independent analysis shows that over 500 additional social housing dwellings need to be built each year until 2041 to meet current and future demand,” Ms Chugg said.

“We need a clear pipeline to build our way out of this ongoing housing crisis, because we currently have 5,069 households on the social housing waitlist, and homelessness services and community housing providers are continuing to see increased demand for assistance,” Ms Chugg said.

“To build more affordable homes we need to increase the capacity of Community Housing Providers in Tasmania. We are pleased to see an additional $39.19 million noted in Budget payments next year, as well as a boost to the Social Housing Maintenance Fund by $1.95 million to top up the 20 million in last year’s commitment, which will help to keep existing homes up to scratch,” Ms Chugg said.

Each year, Shelter Tas submits a Budget Priority Statement on behalf of the Tasmanian housing and homelessness sector and at the top of the list is the urgent need to increase the supply of social and affordable rental homes. Right now, demand is far outstripping supply—and it’s having a devastating impact on women and children escaping family violence, young people, older Tasmanians, and those on low incomes.

“With our community facing cost of living pressures, escalating housing costs, and over 40,000 households managing the stress of high rents in this tight and competitive private rental market, we want to see support for services and those people on the lowest incomes prioritised,” Ms Chugg said.

“There has been a 45% increase in homelessness between 2016-2021, and 34 requests for assistance are unable to be met by crisis services each day. As well as building more homes, we need targeted strategies for specific population groups that are particularly vulnerable,” Ms Chugg said.

“Women and women with children are some of the hardest hit and are bearing the brunt of the housing crisis. We need to see a dedicated housing response for women and children. Our research 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. One women’s shelter in Tasmania has reported they are forced to turn away 9 out of 10 women who come to them for help. So, we are pleased to see five new units and $674 000 over four years for the Hobart Women’s Shelter Safe Place. The Tasmanian Gender Budget Statement 25/26 also provides an important analysis and states the need for housing support for women facing homelessness with 2.4 million over two years,” Ms Chugg said.

“Evidence also shows that experiencing homelessness early in life increases the risk of homelessness in later life, and we are highly concerned at the increasing levels of youth homelessness, as 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.

“Equally vital is funding for existing, new, and expanded housing and homelessness services, including investment in the workforce. Frontline homelessness services are not only facing increased demand, but they are also experiencing increasing operational costs but without adequate indexation, essential frontline services will continue to be stretched. We are disappointed that services did not receive a 20% increase in funding as recommended in the Shelter Tas Budget Submission, but relieved that Bethlehem House will get a welcome boost in this Budget of $2.82 million,” Ms Chugg said.

“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 meets the needs of Tasmanians who are doing it tough and feeling the impacts of the housing crisis. We need ensure that the target of 10,000 homes makes meaningful progress towards eliminating homelessness,” Ms Chugg said.

“Scaling up social housing and properly funding homelessness, family violence and youth services — can give people the stability of a home. This will make our communities stronger, healthier, and more productive,” Ms Chugg said.

 

Media release – Tasmanian Small Business Council, 29 May 2025

Budget has some bright spots but small business still left wanting

‘Today’s budget provides some bright spots for the future of new businesses but still leaves struggling small businesses wanting’, said Robert Mallett CEO of the Tasmanian Small Business Council.

‘Funding on the skeleton of the Small Business Start-up Permit is great news for intending entrepreneurs with a dream and a drive to realise their small business ownership dreams in the coming year.”

‘Draft legislation, promised for the next quarter, will hopefully encourage a number of new enterprises to “give it a go” without the spectre of months and years of delay whilst basic permits are debated by bureaucrats.

‘Additional funding for the well established Tasmanian Business Advice Programme is also welcomed. Value eroding bracket creep as a result of no new money over a number of years has put the initiative under significant stress but today will ease the burden.

‘Business people don’t just manage their business affairs between 9 and 5, five days a week so the Online Business Advice Platform will enable owners to seek advice at a time that suits them and not just when bricks and mortar businesses are open.

‘Missing is a continuation of the Business Advice and Financial Guidance support measure which enabled small businesses struggling to deal with the real life challenges of business, having a difficult time post COVID, to seek independent financial advice.

‘The Treasurer’s commitment to a surplus in the foreseeable future is to be applauded but the proof of the pudding will be in the ongoing management of our economy starting to creak under the weight of a sizeable bureaucracy.’

Media release – Dr Michael Lumsden-Steel, President of the Australian Medical Association (AMA) Tasmania, 29 May 2025

Increased Funding for Health Care Falls Short

Expenditure

Financial pain in health is set to continue across the health system. Health is on target to spend $350 million more than was allocated in last year’s budget. This money was needed to meet increasing demand for services and implement measures to try to alleviate bed block in our hospitals.

No one was swimming in money; in fact, the opposite is the case. The hospitals have been tightening their spending to the point it is damaging morale, increasing stress in the workplace, and resulting in staff burnout. Specialists, such as general practitioners with specialist interests, who were addressing specialist medical clinic waiting times, have been discontinued. The wait lists remain unchanged, and although ambulance ramping times are reported to be decreasing, patients continue to stay in emergency departments for extended periods, and elective surgeries are frequently cancelled. Pathology specimens now take up to 10 weeks to be reported, and diagnostic medical imaging wait times are increasing.

The government has introduced tighter locum policies that are making it harder to solve workforce problems as they arise putting more stress on those left in the system and travel policies that are requiring more approvals before doctors are able to attend required professional development opportunities.

At a time when the Premier has espoused cutting red tape, we are seeing red tape grow in the management of the health workforce.

Rather than set a realistic budget for next year, the budget papers show the government believes a less than 1 per cent increase (0.9%) in the total health budget for 2025/26 and 0.2% increase for hospital services will be sufficient. This will mean either another budget blowout or cuts to vital health services.

There is not enough money in the budget to meet increasing demand, keep the Tasmanian Health Service competitive attracting a medical workforce, and put in measures to attract doctors to the north and north west of the state, both of which are operating on locums and a high number of overseas trained doctors, which while very welcome, also brings challenges.

We acknowledge that not all the heavy lifting should be done by the state government, with the commonwealth needing to step up to pay its fair share of public hospital funding. As it is, the commonwealth is contributing less than 40% of the spend when they should be carrying at least 45% of the funding burden. It is this delay in commonwealth funding which is creating the pressure cooker environment and workplace stress which must be urgently addressed. It is critical the next National Health Reform Agreement delivers for our public hospitals, or we are going to see services crumble under the pressure of increasing demand, staff burnout, and lack of a supportive workplace.

Demand pressures should be managed both in the short term and long term. In the short term, this can be done through increased funding for acute care and support for sub-acute patients and patients in the community. In the long term, funding should be increased for prevention measures.

A failure of this budget is the cuts to public health. At the same time as the government is developing its twenty-year preventative health strategy, it is cutting funding from the very area needed to deliver programs. This is backward thinking and will only mean worse health outcomes in the future.

We also strongly believe the $5m invested in Pharmacy Scope of Practice is a step in the wrong direction. If the problem is GPs not going into aged care, then invest the $5m into incentives for GPs and ages care specialists who are the best-qualified people to provide healthcare, to do so. We do not need para-medicine being delivered by other non-medical providers, no matter how well-intentioned. We need more GPs. The Federal Government should urgently heed the AMA’s recommendations to modernise Medicare and improve funding, allowing GPs to lead collaborative care with multidisciplinary teams, including pharmacists working alongside doctors.

Revenue

AMA Tasmania is not just about whingeing about there not being enough investment in health. We believe it is time for state and Federal Governments to begin discussions regarding tax reform. It is important that the public is involved in these discussions. Without increased revenue, states may need to make decisions about what services will no longer be provided and consider implementing a user-pay system.

Selling an asset like the MAIB that makes money for the government doesn’t make sense. It is short term gain for lost long term revenue source. This is a backwards decision, which is likely to lead to higher premium costs for Tasmanians once in private hands. AMA Tasmania is concerned that a privatised MAIB will be profit driven and will put profits before motor vehicle accident medical and mental health care.

Sometimes you need to invest money to make money. We need the THS to fund properly the staff required to ensure all appropriate medical billing is occurring in the hospitals to generate income that helps to pay doctors’ wages, and ensure that hospital activity is captured quickly and accurately to maximise the federal funding received by the National Health Reform Agreements.

With net debt blowing out, it is time the Tasmanian and Australian Governments made some brave decisions around taxation, such as expanding Land Tax, or introducing a sugar tax and a volumetric tax on alcohol. If we want world-class health care in our hospitals in Tasmania, we need to be prepared to pay for it.

Media release – Tasmanian Council of Social Services, 29 May 2025

Tasmanian State Budget initial analysis

Today’s Budget fell short on the Government’s promise to ‘deliver on the things that matter to Tasmanians.’

TasCOSS CEO, Ms Adrienne Picone, said Tasmanians tell us the things that matter most are a safe and affordable place to call home, the ability to put food on the table, and paying for energy and health care.

“We’re concerned the Government has lost sight of the real issues that matter most to Tasmanians, with billions of dollars spent on hard infrastructure and significant financial capital consumed by cost blowouts and planning mistakes that could have been avoided,” Ms Picone said.

“A new stadium won’t help Tasmanians living on low incomes feed their family and get their foot into the housing market.

“This Budget spends more than $2 billion on servicing government debt. This is money that could have been used to build 5,000 social and affordable homes, thereby providing housing for everybody on the social housing waitlist.

“We’re also concerned the level of debt we’re taking on to fund infrastructure projects is severely impacting the funding available to deliver essential services to Tasmanians, with service providers already reporting increased presentations and requests for help.

“We are aware of many community services organisations who will be cutting hours, cutting staff, changing services delivery, and most concerning, cutting services completely. And sadly, this is just the tip of the iceberg of the crisis in community services that we see on the horizon.

“There are some welcome announcements in the Budget, notably the removal of the Working with Vulnerable People Card registration fees for the next two years, and a goal to achieve 100% literacy at the forefront of our educational focus.”

Ms Picone said she was pleased to see the Government recognise the industry’s contribution by committing to five year funding agreements for community service organisations, but called for it to be accompanied by a clear timeline for implementation and an indexation formula that reflects the real costs of doing business and the increasing level of need in the community.

“These measures are the start, not the finish, to funding the true cost of delivering essential services to Tasmanians,” she said.

“By investing in our people — in our social infrastructure — we build resilient communities with strong relationships and strong systems.”

Tasmanian Times (TT) is a community-based news and current affairs service covering the island state of Tasmania. It exists to provide a diverse view of Tasmanian issues. TT creates and supports independent media content utilising the best of modern technologies and tried-and-true practices of public-interest journalism.

Support us in expanding our coverage and developing new content by and for Tasmanians. 

New initiatives on the way include:

  • a weekly podcast covering current affairs
  • a revamped website
  • a monthly cartoon competition
  • a user-friendly app for both Android and Apple devices
  • a weekly roundup of key stories