Health, education, law: where budget cuts are coming from in the latest state budget
Tasmania's $10.3bn budget deficit forecast has triggered major spending changes across health, education and law enforcement as costs continue to soar. Here’s a breakdown of the budget’s impact by portfolio.
The 2025 state budget puts the state $10.3bn in the red by 2028/29, equivalent to an entire year’s government spending amid continuing pressure from soaring health costs, public sector growth and wage demands, and poor returns from government businesses.
Here is a breakdown of budget spending and cuts for the major portfolios.
LAW AND ORDER
Public order and safety remains among the largest spending areas in the 2025/2026 interim budget, rising 9 per cent to $3.9 billion compared with the 2024/2025 budget.
The Police, Fire and Emergency Services department is expected to spend $616 million, up from $525 million in 2024/2025 – an increase of approximately 17 per cent. Meanwhile, the Department of Justice is projected to spend $436 million, rising from $387 million, representing an increase of around 13 per cent.
The key deliverables for this year’s police budget involves the allocation around $3.3 million for enhancing protective and safety equipment for police, with the figure including funding for the metal doctor wand program. A further $448,000 of funding is estimated to be delivered for the project next fiscal year, while $500,000 will also be provided this year for body worn cameras for Tasmania Police.
The bulk of the police budget – $14.5 million – will go towards support for injured workers, providing ongoing additional funding to support police officers and state service employees who have a workers compensation claim, marking around a $2 million and a 16 per cent increase compared to the estimated spend of the 2024/2025 budget. Additional funding will go towards helicopter rescue service contracting and reforming the Tasmania Police Electronic Rostering.
Police stations set to receive funding for upgrades include Bridgewater Police Station, Rosebery Police Station, St Helens Police Station – the latter receiving $1.8m more funding than what was budgeted in 2024/2025.
Also included in the police budget is $500,000 to implement the key recommendations of the Weiss Review, including a restorative engagement framework for victims of police-related abuse, strengthened community engagement with sporting organisations, and a dedicated victim management team separate from the Professional Standards Unit, with $300,000 allocated for next year.
The Justice Department will receive $500,000 this year to support family violence intervention programs, with $1.38 million allocated to community corrections for managing high-risk offenders over the next four years. Additionally, $496,000 from the 2025/26 budget is earmarked for the Reducing Re-offending program.
Tasmania’s Prison Services will also receive $25 million worth of funding to help cover rising costs, including for staff, security, and the essentials – including food, clothing, and bedding – needed to accommodate the growing prison population.
The 2025/2025 $1.6bn infrastructure budget also includes the allocation of $105.3 million for the development of new youth justice facilities to replace the Ashley Youth Detention Centre, with the Justice Department to also receive $2.47 million for the establishment of the Commission of Children and Young People. $2.475 will be allocated each year for the next three years after the 2025/2025 fiscal year.
Treasurer Eric Abetz said it was important to ensure emergency services had the “powers, tools and support they need to keep Tasmanians safe”.
HEALTH
The Tasmanian government will pour more than $3.5b into the state’s healthcare system this financial year, with the 2025/26 budget allocating $351.6m for community health, $251.3m on statewide mental health services, and $286 million to run hospital emergency departments.
Another $182.4m was found for ambulance services, which includes pre-hospital emergency services, health transport, and aeromedical functions, operated by a statewide network of paramedics, doctors, and patient transport officers.
Releasing his maiden Tasmanian financial blueprint on Thursday, Treasurer Eric Abetz revealed $3.553 in health funding for the current financial year, with $3.541b, $3.595b, and $3.699b allocated over the forward estimates to 2028/29.
The government has budgeted a total of $14.388b for health over that four-year period.
Although this year’s fiscal allocation of $228.9m to meet health demand rises to $232m in 2026-27, funding for the key deliverable is forecast to drop under $206m in the both the remaining out years.
And while this year’s fiscal allocation to community health services represents a $45m increase on the 2024-25 budget, spending in the vital area is forecast to drop to $344m in both of the next two years, before rising to $353m in 2028-29.
Major health programs funded in 2025/26 include $5.4m to help establish new rotary and fixed-wing services at the Cambridge Aerodrome, $5.2m of Royal Hobart Hospital’s mental health short stay unit, $16.9m to fund the next 12 months of the government’s elective surgery four-year plan, and $8m for Launceston General Hospital’s Northern Heart Centre.
Another $2.5m was found for diagnostic breast screening services, and $3.8m for The Bubble Launceston, which will offer an expanded suite of women’s health services including antenatal care, pelvic health and gynaecological care.
The 2025-26 state budget also contained $206.5m to fund health-related capital works program, including $40m for a new 40-bed older-person mental health unit at St Johns Park to cater for patients with complex dementia, $20m for a digital health transformation, $4.7m to fund a surgical robot, and another $4.6m to upgrade Tasmanian rural hospital and ambulance stations.
“This interim budget provides over $915m to meet increased demand for health and mental health services, as part of our record investment of almost $10m every single day into our health system,” Mr Abetz said on Thursday.
“We are building on our record investment into health infrastructure, with over $770 million invested in this budget across the forward estimates, which includes redevelopments at all our major hospitals.”
TOURISM
Tasmania’s tourism sector has been handed a funding boost in the 2025-26 budget, as visitor numbers continue to rebound from pandemic levels.
Tourism Tasmania’s total operating expenses are budgeted at around $41m, with a further $10 million secured in forward estimates to maintain consistent investment in tourism marketing.
Immediate industry supports also include a $6m tourism and hospitality support package to boost visitation, alongside $1.5m for the Aviation Fund dedicated to increasing airline access and capacity.
Major upgrades to visitor infrastructure on the Next Iconic Walk Project to Freycinet, Mount Field and Maria Island also forms part of the government’s tourism investment.
Treasurer Eric Abetz said the investments were about ensuring the locations are “safe, accessible, and sustainable for generations to come”.
“In our Parks and Reserves, the government is sustaining the very places that inspire us as Tasmanians and attract visitors from around the world,” he said.
In his parliamentary address, Mr Abetz also touted the tourism benefits of the Macquarie Point Stadium, which is projected to receive equity funding of $609 million over the next four years.
“(The stadium) presents opportunities that are so much broader, offering unique function spaces for conventions, cultural and community events and a broad range of concerts, sporting codes, and exhibitions on a scale never before possible,” he said.
EDUCATION
The state government will fork out $1.45b for in-school education in the 2025-26 financial year, with $225.2m to be spent on children’s services, and $49m on Libraries Tasmania, as part of an overall education budget of $2.38b.
Tasmania’s latest fiscal road map includes a total of $9.79b over the forward estimates for education, with $2.42b allocated in 2026/27, $2.47b in 2027-28, and $2.52b in the 2028-29 financial year.
Freshly minted Treasurer, Eric Abetz, also earmarked $32.7m for early education, $1.63m to run the Commissioner for Children and Young People’s office, and $24.7m to fund the Better and Fairer schools agreement.
The 2025/26 education spend includes $1.3m for Variety’s school’s breakfast program, and $1m for the Huonville Childcare and Child and Family Learning Centre outreach service.
While $125,000 was allocated in the current financial year to the 26TEN program – which helps Tasmanian adults to grow functional literacy, numeracy, and digital skills – no funding was included in any of the out years of the forward estimates.
The government’s Bringing Baby Home initiative – which supports parents and their baby to remain together at home while keeping children safe – received $2.6m, while another $9m will help align the Out of Home Care program’s services with the recommendation of the Commission of Inquiry.
Almost a third of the year’s budgeted $74m capital investment spend will help fund new fit-for-purpose youth justice facilities to replace the controversial Ashley Detention Centre, while another $8.5m go towards the new Brighton High school.
The Treasurer found $8.6m for upgrades to the Hobart City High campus, while Montello Primary School’s redevelopment received a $5.4m boost, and $4.75m was set aside for the revitalisation of Cosgrove High.
A major redevelopment of Exeter High was funded with a $2.5m allocation, and $2.3m was found for works at the North West Support School.
The Australian Education Union said the 2025-26 state budget offered nothing to alleviate “crushing” classroom workloads or escalating violence in schools, and lacked any commitment to pay educators fairly.
“Tasmania is getting more federal funding for education, which means the government should be spending that extra money in schools – but we have no confidence that this Minister will direct that funding to schools, where it’s desperately needed, and not divert it into her own pet projects,” AEU Tasmania president, David Genford, said.
“This Budget offers nothing for the people keeping our schools running.
“Teachers and support staff don’t need the government asking them to find ways to cut more corners – they need support to do their jobs safely and effectively.
“Classrooms are already running on empty. Good will from educators is the only thing propping our education system up.
“Any further cuts will hit students directly.”
ENVIRONMENT
The 2025/2026 budget is proof of the government’s policy of “climate denialism” according to Greens Leader Rosalie Woodruff.
The Liberal government has cut funding for environmental and climate change related initiatives in the 2025/2026 budget, directing it instead to parks operation, heritage and environmental protection programs.
Total expenditure on climate change initiatives is estimated to decrease by around $831,000 or 8 per cent compared to that which was budgeted in the 2024/2025.
Expenditure will also decrease for energy and renewables, with spending projected in the 2025/2026 fiscal year at around $27 million – a marked decrease from the $34 million figure present in the 2024/2025 budget and representing around a $7.5 million difference.
Spending in this area is forecasted to continually decrease significantly over the forward estimates, with next year’s spending projected around $23 million and jut $6.6 million the year after.
Budget documents state the funding decreases reflect the completion of projects like the Tasmanian Green Hydrogen Hub and the conclusion of the funding profile for the Climate Change Action Plan and Emission Reduction and Resilience Plans.
Meanwhile, operational funding for the Environmental Protection Agency is projected to increase slightly to be around $17 million – with $350,000 for upgrades to its air-quality monitoring network among the areas the money will go towards.
The 2025/2026 budget will also see around $7.6 million go towards parks and operations park operational support, and involve major upgrades to visitor infrastructure including for the Next Iconic Walk to Freycinet, on Mount Field and Maria Island.
A “Renewable Energy Schools Program” is also budgeted at around $1.905m in 2025/2026 and involves the rollout of solar panels in government schools, with additional funding for Aboriginal Heritage Tasmania, the Aboriginal Land Council of Tasmania and measures to prevent delays in heritage assessments.
Despite this Dr Woodruff said the budget put “nothing into the environment”.
“In a climate crisis where we’re already underspending compared to the rest of the nation, we have cuts,” she said.
“This is a stark explanation, if you ever need it, of (Treasurer Eric Abetz’s) climate denialism.”
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