Tasmania’s $240m AFL stadium pitch to Anthony Albanese

Federal taxpayers would contribute $240m towards a new Hobart stadium, less than first suggested, under a proposed business case being considered by the Prime Minister.

Artist impression of Hobart's proposed AFL stadium at Macquarie Point.

Federal taxpayers would contribute $240m towards a new Hobart stadium, less than first suggested, under a proposed business case being considered by Prime Minister Anthony Albanese.

The pitch by Tasmanian Premier Jeremy Rockliff to Mr Albanese, made during talks on Thursday, says the $741m roofed stadium would act as a catalyst for $85m in extra economic activity and 950 jobs each year.

“The business case clearly shows this project stacks up and will be a jobs and economic bonanza for Tasmania, both during construction and ongoing,” Mr Rockliff said.

“The precinct would finally activate the (CBD-adjacent) Macquarie Point site, and be one of the nation’s best urban-renewal projects. It will also allow us to unlock opportunities for additional social and affordable housing and development along the transport corridors, providing more homes for Tasmanians that need them.”

The stadium – a seemingly last-minute demand of the AFL to clinch a Tasmanian team in the competition – is opposed by the state Labor opposition and some federal Liberals. They argue it should not be a prerequisite for Tasmania securing the AFL’s 19th licence and cannot be justified when the state has two existing AFL-compliant stadiums, particularly during crises in health, housing and the cost of living.

However, the business case argues the stadium would kickstart a wider Arts, Entertainment and Sports Precinct at the largely derelict Macquarie Point.

It points to $300m in additional economic activity and 4200 jobs during construction of the stadium, as well as ongoing annual benefits.

The full cost is estimated at $741m, including $26m of already-committed works on the site.

With the Rockliff Liberal government pledging $375m and the AFL $15m, the business case says $240m would be required from the federal government. The remaining $85m would be funded through “borrowings against land sale or lease for commercial uses”.

Federal Sports Minister Anika Wells last weekend suggested the Tasmanian funding request was “a lot to ask” of federal taxpayers and that an AFL team for the island state should not be contingent on a new stadium.

However, Mr Albanese has promised to carefully consider the business case and Mr Rockliff said his meeting with Mr Albanese was “very constructive”.

The document pitches the stadium and surrounding precinct as able to “unlock” long-promised public transport projects, including a northern suburbs transit corridor and broadened ferry network.

The stadium would seat 23,000 but be capable of being scaled-up to 30,000 capacity for large performances with standing room. It would host “at least” 44 events, including 28 new to the state, attracting 587,000 people a year, including 123,500 overseas and interstate visitors.

It pitches the stadium as “far more than just a football ground”.

“Macquarie Point Stadium presents an opportunity to offer something out of the ordinary that doesn’t exist anywhere else in the world: to create a stadium that not only caters to, and attracts, world-class sporting, entertainment events, business and conventions, but also creates a diverse, integrated precinct activated 365 days of the year that belongs to all Tasmanians and attracts visitors worldwide,” the business case argues.