Federal budget 2025-25: Lukewarm response from Tasmanian business, social services sectors
Both the state’s peak business body and social services sector have described Treasurer Jim Chalmers’ pre-election budget as lacking reform and vision.
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Treasurer Jim Chalmers’ pre-election budget has received a tepid response from both the Tasmanian business community and social services sector as anticipation now builds towards polling day.
Dr Chalmers delivered his fourth budget on Tuesday night, unveiling further tax cuts, energy bill relief, and cheaper scripts under the Pharmaceutical Benefits Scheme.
After achieving two consecutive surpluses, the government is now forecasting deficits for the next decade.
There were few surprises in the 2025-26 budget, with three previously promised Medicare urgent care clinics for Tasmania, an additional $80m to support the new transit lane on the Southern Outlet, $200m for upgrades to the Arthur Highway, and $20m for planning and design work for the proposed new bridge over the Kanamaluka/Tamar River.
Funding has also been set aside to upgrade Macquarie Wharf 6 in Hobart so the RSV Nuyina can berth there.
Tasmanian Chamber of Commerce and Industry CEO Michael Bailey said the budget “missed the mark” and should have invested further into the Tasmanian Freight Equalisation Scheme.
“Instead, it provided no certainty to the thousands of businesses that export from Tasmania to the mainland and overseas,” he said.
“In addition to that, we are concerned that changes to non-compete clauses in contracts will discourage businesses from investing in training, while not extending the instant asset write-off for small business will also put the brakes on investment at a time when we need it most.”
Tasmanian Council of Social Service CEO Adrienne Picone said the budget lacked the “long-term vision and reform necessary to address cost-of-living pressures being felt by the Tasmanian community”.
“While tax cuts will provide relief for many, those on the lowest of incomes – who do not earn enough to pay tax – get nothing. This budget missed a critical opportunity to lift Tasmanians out of poverty by raising working age payments to at least $82 a day,” she said.
“In a housing crisis, there is sadly no new support for renters, and as a result the doubling of funding for homelessness services to around $400m a year is essential to address the ongoing need. Additional funding ($6.2m) for homelessness research, advocacy and co-ordination is a positive announcement.”
Franklin Labor MP Julie Collins said the government had already delivered a $300 energy rebate and was working to reduce the cost of medicines and build an additional 50 urgent care clinics across the country.
“Only Labor can be trusted to deliver the health care Tasmanians deserve, and the cost-of-living relief that Tasmanians need,” she said.
Tasmanian Infrastructure Minister Kerry Vincent welcomed the Commonwealth’s commitment to infrastructure projects in the budget but urged federal Labor to “work collaboratively with us on road projects to benefit Tasmanians”.
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Originally published as Federal budget 2025-25: Lukewarm response from Tasmanian business, social services sectors
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