Tasmania state budget will help battlers as health a priority

This year's budget is big on health and education spending, as well as easing cost of living pressures: help with electricity concessions, council rate relief, water and sewerage bill discounts and transport subsidies. YOUR FULL GUIDE >>

Premier Jeremy Rockliff. Question time in the Tasmanian parliament. Picture: Nikki Davis-Jones

A $900m increase in health spending and almost $350m in cost-of-living relief for battlers is the centrepieces of the 2023-24 Tasmanian budget to be handed down today. 

See your guide to the budget below.

Updates

3:13 pm May 25, 2023 Highlight

Tassie's health system gets budget boost

Blair Richards

The state government will continue to spend billions on Tasmania’s health system to address priorities including elective surgery waiting lists, specialist waiting lists, staffing, beds and continued renovations to the four major hospitals.
The state government has allocated $12.1bn for health over the four years of the forward estimates – an ­increase of $900m on last year’s budget.
Health is the government’s major expense, accounting for 34.8 per cent of all spending.
Premier and Health Minister Jeremy Rockliff said the increased spending demonstrated the government’s commitment to improving the health system.
“The budget ensures targeted, careful and considered investments that enables us to get on with the job of driving down waiting lists, employing more staff, opening more beds, and delivering new and upgraded infrastructure and health services right across the state,” Mr Rockliff said.
Mr Rockliff said the health spending was “carefully targeted”.
“It is because of our sensible, responsible economic management (we can) invest so heavily into Tasmania’s health system,” he said.

The Royal Hobart Hospital and the Hedberg Building. Picture Eddie Safarik

Mr Rockliff said the $196.4m statewide elective surgery plan was already having an impact, with elective surgery waiting lists to their lowest level since 2018.
There are currently 8493 people waiting for elective surgery in Tasmania.
An extra $38m will be spent in 2023/24 to provide an additional 22,000 endoscopies by 2027.
An additional $20 million will be spent in the next two yeas to urgently address outpatient clinic wait times.
Tasmanians will also have more access to health care and advice in their homes, with $41m allocated to continue and expand virtual care based on the COVID@homeplus program.
Hospitals and health account for $682.9m of the government’s overall four year infrastructure spend.
The major projects include $172.4m for the Royal Hobart Hospital redevelopment, including the next stage of the expanded emergency department, a new ICU, a $21.9m pharmacy redevelopment, and $2m to start the master planning process for stage three of the redevelopment – now focussed on New Town’s St John’s Park.
St John’s park will become home to mental health services, sub-acute, rehabilitation, alcohol and drug services, older person’s care, palliative care and community health.
The government will also spend $115.4m on the Launceston General Hospital and $87.1m on the Mersey and North-West Regional hospitals.
In mental health, the government will provide $96m in additional funding for a range of programs around the state.
Treasury identifies the health budget among a list of risks to the state’s finances, given the difficulties keeping the budget on track amid ever-increasing demand.
The state is also vulnerable under the National Health Reform Agreement which caps growth in funding to the states at 6.5 per cent per year.
There’s a risk demand for health services may grow at a faster rate than the growth in the federal government’s contribution

3:05 pm May 25, 2023

'Building Tasmania’s Future: Strong, Safe, Secure'

David Killick

Treasurer Michael Ferguson has handed down a sober state budget, trimming spending as global economic headwinds threaten to put the brakes on the state’s booming economy.
Delivered under the catchline “Building Tasmania’s Future: Strong, Safe, Secure”, the budget is big on health and education spending, amounting to 60c in every dollar the government will lay out in the coming year.
As promised, there is $350m in support for those struggling to the rising cost of living: help with electricity concessions, council rate relief, water and sewerage bill discounts and pensioner transport subsidies.
Mr Ferguson predicted a deficit of nearly $300m in the 2023/24 financial year, following on from $217m this financial year.
A surplus is not predicted until 2025/26: and will be a bare $12.7m. The Liberals’ last was delivered in the pre-Covid era of 2018/19.
Predicted spending for the next financial year is up just over seven per cent over last year’s budget predications to $8.7bln, while revenue will rise just under five per cent to $8.4bln.

Images from Budget media conference held by Tasmanian Premier Jeremy Rockliff and Treasurer Michael Ferguson at the Executive Building in Hobart on Thursday, May 25, 2023.

But the budget papers show that predicted spending in 2023/24 will be 1.3 per cent lower than last year’s actual result of $8.5b and revenue down 0.4 per cent.
Both represent even greater contractions when inflation is taken into account.
The budget forecasts growth state final demand to increase from 1.5 to 2.75 per cent, unemployment to rise from four to 4.5 per cent and CPI increases to ease from 7.25 to 4.25 per cent in the year ahead.
In his budget speech, Mr Ferguson emphasised he was readying the state’s finances for the challenges that may loom ahead.
“This is a carefully considered budget that deals with the real economic headlines and prepares Tasmania for the future,” he said.
“There are undoubtedly challenging economic headwinds affecting our nation today, but Tasmania’s very strong economy and the decisions reflected within this budget have placed us in a solid position to weather them.
“The Tasmanian government recognises that despite a softening national economy, we need to continue to support Tasmanians, unlock opportunities and provide a business environment that generates continued growth and security.”
The state’s debt is tipped to come in at $3.4b in 2023/24, continuing a steady climb expected to reach $5.6b within four years.
Gross government debt — not including historic superannuation liabilities — will exceed $10,800 per Tasmanian and surpass $15,000 by 2027.
The interest bill on the debt will come in at half a billion dollars next financial year, $700m in 2026/27, which amounts to nearly eight per cent of projected government spending.
As one of the measures to trim costs, the government will introduce an “efficiency dividend” on public sector agencies of 0.75 per cent from 2024/25, to trim $300m in spending over four years.
Mr Ferguson said the government would work to ensure services were not impacted.
The budget papers reveal the government delivered 73 per cent — or $968m — of the $1.3bln in infrastructure spending it promised last year. It has promised $1.2bln in the coming year, $90m less than last year’s promise but $266m more than it was able to build.
And it notes the proposed stadium build as one of the potential risks to the state’s bottom line, pointing out that it “may be subject to the same ongoing supply constraints and cost escalations as other major projects”.
A total of $230m has been allocated over the next four years, plus $100m to relocate the wastewater treatment plant on the site.

3:03 pm May 25, 2023 Highlight

$230m boost for Mac Point

Blair Richards

It’s official: The state government will spend $230m over the next four years on Macquarie Point and, as its centrepiece, a new stadium.
The state budget has revealed more detail on how the contentious stadium project will progress in line with Tasmania’s new AFL team and a commitment to fully develop Macquarie Point.
With the stadium not due for completion until 2028 or 2029, the initial spending starts slowly and ramps up in year four of this budget.
Most is due to be spent in 2026/27, with $125m allocated for that year.
There’s also $60m allocated over the next three years for an AFL high performance centre, with a location yet to be named.
READ MORE HERE.

3:02 pm May 25, 2023 Highlight

Delivering new homes to ease crisis

Tia Ewen

Almost $373m in grant funding will go to Homes Tasmania to deliver 10,000 new homes and units by 2032 in the government’s $1.5b plan, the state budget has revealed.
Housing minister Guy Barnett said Homes Tasmania was designed to help build homes faster.
“Its ability to borrow ensures it can deliver the homes Tasmanians need quickly, efficiently and at best value for the Tasmanian taxpayer,” he said.
The government has also partnered up with Build Up Tassie and will invest $4m over six years to provide a free work readiness program for Tasmanians aged between 16 and 24 to enter into the construction industry.
A further $3m will be invested to extend the Residential Land Release Rebate initiative to help supply new land for market.
The MyHome Extension program which helps support low and middle-income Tasmanians to purchase their own home has received funding of $1m over two years.
The Budget is also investing millions for homelessness services for vulnerable Tasmanians, including $28m towards Statewide Safe Spaces and $6.5m over two years for the Private Rental Incentive Scheme Enhancement.
“We know that some vulnerable Tasmanians need help right now which is why we are investing more than $38m on wraparound services to ensure those who need help are getting the services they need,” Mr Barnett said.
“This includes funding of $15.58m for Housing Connect Front Door and support, $18.01m for short term homeless accommodation (crisis and transitional) and $2.64m for longer term supported accommodation.”
Premier Jeremy Rockliff said the Budget would also invest $1.72m to continue the Hobart Women’s Shelter Emergency Response.
“Our investment in social and affordable housing and homelessness initiatives continues with this Budget,” he said.
“The 2023-24 Tasmanian Budget and Forward Estimates includes almost $373m in grant funding to Homes Tasmania to continue to provide housing and homelessness services to deliver Budget initiatives and provide funding support for its capital program.”

3:01 pm May 25, 2023 Highlight

Tourism gets a boost in budget

Tia Ewen

Tasmanian tourism will receive $6 million investment over the next two years to put the state on the map.
The Budget has committed $6m towards Tourism Tasmania in 2025-26 to continue its brand position of showcasing Tasmania to the world.
The state’s natural wonders will also receive $163.7m in funding to go towards parks infrastructure, including $58.1m to go towards the development of the Cradle Mountain Experience, $3.3m towards the revitalisation of the Hastings Thermal Pool, $8m for continued investment in the Arthur-Pieman Conservation area and $28.3m towards the advancement of Tasmania’s multi-day, hut-based walk in the Tyndall Range.

Cradle Mountain.

Aboriginal heritage projects will receive $500,000 over two years and $1.1m will be invested to support the tourism and hospitality unit to continue providing support to industry, including workforce development.
Premier Jeremy Rockliff said the investment would help the state’s tourism future which would support thousands of jobs and add millions into the state’s economy each year.
“The industry has bounced back from the pandemic and is once again thriving, but we need to keep the momentum going and keep showcasing our state to the world, and our $6m investment will do just that,” he said.
Some of the state’s beloved events will receive more than $10m funding across four years.
In the next financial year, $1m will be invested towards major events including the Australian Wooden Boat Festival, Festival of Voices, Huon Valley Mid-Winter Festival, Junction Arts Festival, Burnie Ten and the Rolex Sydney-Hobart Yacht Race.
The Collingwood Magpies Super Netball team will receive $930,000 over three years to continue playing in the north and south of the state and $1.1m will go towards the state’s partnership with The Hawthorn Football Club.

3:00 pm May 25, 2023 Highlight

$8.9 billion for education

Tia Ewen

The government will invest $8.9b in education and a further $305.1m into schools, education and vocational infrastructure over the next four years.
More than $36.5m will be invested in class support including teacher assistants and educational support specialists over the next four years.
Education minister Roger Jaensch said the Budget would provide additional assistance to classrooms with 66 extra support positions in 2023 which will increase to 100 by 2025.
“A further 25 Education Support Specialist positions will also be introduced in 2023,” he said.
The Budget also included $4.6m towards teacher attraction and retention next financial year, with a total $19m investment expected over the next four years.
Mr Jaensch said the government wanted to attract the best and brightest teachers, who have a big influence on young learners.
“We are also ensuring teachers receive the mentoring and support they need by investing $15.4m over the forward estimates to increase senior leadership roles in targeted areas of need,” he said.
The Budget will also invest $3m towards young people to support them while exiting care to build independence, skills to help stay engaged in education and learning as a pathway.
The state government will be investing in major education infrastructure projects including $20.9m towards the new Brighton High School, $14m towards six new Child and Family Learning Centres, $8.5m for the new K-12 Sorell School and $14.6m towards Legana Primary School over the next financial year.
“This funding includes exciting new school builds at Legana and Brighton, which are both underway, along with major developments of the North-West Support School, Sorell School, Hobart City High School, Cambridge Primary School, Exeter High School, Lauderdale Primary School, Montello Primary School and Cosgrove High School,” Mr Jaensch said.
Freer Farm Centre of Excellence in Burnie will receive $1.5m for new and upgraded farm infrastructure.
The government is investing more than $660m into skills and workforce growth, including new funding for TasTAFE infrastructure and additional support for the Jobs Tasmania agenda.
TasTAFE facilities in Hobart, Clarence and Alanvale will receive $3m for upgrades taking the total investment to TasTAFE to nearly $120m in new funding in three years.

10:52 am May 25, 2023

Budget will "focus on what matters"

David Killick

A $900m increase in health spending and almost $350m in cost of living relief for battlers will be the centrepieces of the 2023-24 state budget to be handed down on Thursday.

Treasurer Michael Ferguson told the Mercury his second budget would “focus on what matters”.

“Tasmanians’ priorities are our priorities – health, education, housing and building infrastructure,” Mr Ferguson said.

“We understand the pressures. They are real. Inflation has been a very heavy weight on the households of the people of this country, and that ­includes in Tasmania.

“That is why the budget will provide significant investment, increased investment into concessions, direct subsidies to lower people’s bills with more than $347m to support vulnerable Tasmanians in meeting the cost of water and sewerage, electricity and council rates.

“Last year I said it would be $305m, this year, $347m, a very large increase – water and sewerage, electricity bills, council rates.”

Premier Jeremy Rockliff. Question time in the Tasmanian parliament. Picture: Chris Kidd

Premier, Minister for Health and Minister Mental Health and Wellbeing Jeremy Rockliff said the budget would see a ­record-breaking investment to reduce waiting lists and ­support community health organisations.

Mr Rockliff said $12.1bn had been allocated for health ser­vices over the four years of the forward estimates – an ­increase of $900m on last year’s budget – and would lift spending to $8.3m every day.

“Investments will focus on providing targeted support for innovative, community-based initiatives that are delivering positive results for Tasmanians,” he said.

“Tasmania has many grassroots health and wellbeing initiatives that are doing great work in our community and the government is going to back these organisations in, so they can continue to support Tasmanians in need.

“For example, we are giving the local branch of the Australian Breastfeeding Association $110,000 over two years to provide support and services to parents and their children.

“By increasing access for Tasmanians to receive the care and support they need within the community, we can continue to reduce the need for primary and acute health care.”

Mr Rockliff said there would also be support for organisations including the Salvation Army Street Teams, the Pathway Shed and Men’s Table.

“We are investing in innovative programs and initiatives that mean Tasmanians can ­access the health care they need in their communities, closer to where they live, as well as boosting resources in our hospitals for those needing acute care,” he said.

”We have reduced the elective surgery waitlist by 12.6 per cent in the past 12 months – ­reducing the time of those waiting more than clinically recommended by an incredible 21 per cent since June 2022