Government agrees boost revenue in deal to secure crucial stadium vote
An MP who did a deal with the government to back the stadium says taxes will have to increase to put the budget on a more sustainable footing.
Taxes will need to rise and borrowings will need to fall in next year’s state budget, an independent MP says, under a deal he struck with the government to secure his vote for the stadium.
Member for Huon Dean Harriss said he had asked the government for “a clear breach of an election promise” in order to bring the budget back to a sustainable footing.
“I am prepared to consider voting for the stadium, but only on the basis that I can be convinced that the Government, and by this I mean all current Ministers and party backbenchers are fair dinkum about ending its out-of-control spending and getting the budget back on track,” he told Parliament.
“That will require signed commitments to specific actions, including the dumping of long-held but in the circumstances utterly irresponsible promises such as no tax increases.
“Billion-dollar spending commitments have to be paid for.
“The days of using the public purse as a Liberal Party piggy bank must end. If it doesn’t, we’ll go broke.”
Mr Harriss tabled the government’s response to his requests, in which Premier Jeremy Rockliff agreed to increase revenue and cut spending.
“Noting your requests, the government agrees to ... increase own source revenue, by identifying prior to the 2026-27 budget, areas in which additional revenues will be raised and expected amounts of those additional revenues for the 2026-27 Budget,” he wrote.
And the government has also agreed to “reducing Public Non-Financial Corporations’ Net borrowings between 2026-27 and 2028-29 by a cumulative total of $500m - broadly equating to the Mac Point borrowings of $490.7m as predicted in the 2025-26 Budget through to commissioning.”
The letter ruled out new or increased takes ad cuts to revenue, but did not specify how revenue would be increased.
Mr Harriss said it was about time the government did something to get on top of debt.
“Not only is an increase in state taxes and charges back on the agenda, but the government has also agreed it will identify where the increases will come from and how much
they will raise in the lead up to the 2026-27 budget,” he said.
“No doubt it will be painful and no doubt the business community will regard itself as hard done by as a result of what appears to be a clear breach of yet another election promise.
“Welcome to the real world where billion-dollar spending decisions have to be paid for – not ignored or added to the tab for someone else, our children and grandchildren, to pay.”
Greens Housing Spokesman Vica Bayley said reducing borrowings would reduce services.
“Despite assurances that essential services wouldn’t be cut to pay for the stadium, in Parliament the Premier refused to rule out reducing Homes Tasmania’s borrowings.
“It throws a question over its ability to build the homes that vulnerable Tasmanians need,” he said.
“The Premier has long said the essential services Tasmanians rely on won’t be sacrificed to pay for the stadium – while at the same time committing to cut the very public service jobs that provide those services.”
Independent member for Franklin Peter George condemned the deal.
“Building the Macquarie Point stadium will mean Tasmanians will pay higher taxes,” he said.
“It’s taken a secret deal with one MLC to reveal what should have been publicly acknowledged all the time the debate was dividing Tasmanians.
“Higher taxes and deep cuts in public spending are part of a secret deal done with Huon MLC, Dean Harriss, to win his vote for the stadium.”
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