Media release – Regional Development Australia (RDA) Tasmania, 25 July 2025
Op-ed – Professor Sue Kilpatrick
As we wait for an incoming government, it is timely to take stock of where we are—and where Tasmania is heading.
Tasmania is navigating productivity pressures, shifting population dynamics, emerging industry trends, and global economic challenges.
To understand and better respond to these, RDA Tasmania partnered with Strategic Economic Solutions to produce the Tasmanian Economic Review 2025—a data-informed analysis of our strengths, challenges, and opportunities.
Many of Tasmania’s strengths and relative advantages stem from our natural assets: climate, rainfall, fertile soils, and stunning landscapes. We have a strong innovation system, often leveraging natural assets to add significant economic value.
Recent economic performance has closely mirrored population growth, particularly through interstate migration.
That’s why people—our population, workforce participation, and productivity—are central to planning.
Agricultural knowledge and innovation, combined with Tasmania’s soils, water, and climate, make us global leaders in sustainable, high-quality food production. We add value by creating niche products that attract demand, and visitors to experience our food, landscapes and culture.
Tasmania’s abundance of water and wind resources presents significant opportunities for expanding renewable energy—for powering new local industries and export.
Small businesses, for example supporting tourism, health and care, form the backbone of Tasmania’s economy. These are strengths we can and should build on.
As an island, Tasmania faces connectivity challenges. Freight capacity and efficient sea and air transport require ongoing attention. Digital connectivity is essential—fast, affordable, and reliable access to support business, education, and everyday life.
Ultimately, the key to a thriving Tasmania is realising the potential of our people.
There is a mismatch between job vacancies and our population’s skills. Tasmania’s workforce participation rate is country’s lowest.
We are a net importer of workers across all skill levels.
Demand for highly skilled professionals and tradespeople is increasing. Salaries in roles such as teaching, care work, and trades, are now competitive with mainland states.
Tasmania offers a compelling mix of benefits: strong job opportunities, clean environment, and high-quality lifestyle. To make the most of these, we need to invest in social infrastructure.
Childcare and affordable housing are essential to attracting and retaining workers. Tasmania has the worst childcare accessibility in Australia. A fit-for-purpose health system that attracts skilled professionals is fundamental. Addressing workforce challenges isn’t just about wages or migration.
We must better support Tasmanians to pursue higher qualifications and career pathways. This means strengthening education and training systems, and fostering a culture of social inclusion so no one misses out.
Investing in Tasmania’s future.
A thriving Tasmania needs targeted investment—not just in traditional infrastructure, but in the foundations of a strong society.
Investing in education, childcare, housing, and health—alongside transport, freight, and digital infrastructure will unlock private investment, build on our natural advantages and strong innovation culture.
The Tasmanian Economic Review 2025 provides a solid evidence base for policy and investment. By working together—across governments, industries, and communities—we can make the best possible decisions for Tasmania’s future, and ensure Tasmanians can thrive.
Feature image credit Kanamaluka / Tamar: Nick Hanson
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