‘Worst finances in the country’: Tasmania’s debt blows out again

Tasmania has slid $60 million a week deeper into debt during the September quarter, with net debt soaring by nearly $800 million to $5.84 billion. Where the money was spent.

Dean Winter in the House of Assembly Government Businesses scrutiny committee at Parliament House on Monday 24th November 2025. Picture: Linda Higginson

The Tasmanian government slid $60m a week further into debt during the September quarter, new Treasury figures show.

September Quarterly Report 2025-26 was released by Treasury on Friday afternoon.

It reveals that the state’s net debt grew by nearly $800m in just three months, from $5.08bn to $5.84bn.

Government spending was $118m or 4.5 per cent above the pro-rata estimate of $2.6bn for the quarter and revenue was also down $118m, or 4.9 per cent on the $2.4bn projection.

The report noted the timing of payments can influence quarterly results – notably infrastructure spending which was 38 per cent down to be $89m under the pro-rata estimate of $223m for the quarter.

Treasurer Eric Abetz. Inquiry into the TT-Line Spirits Project. Picture: Nikki Davis-Jones

Treasurer Eric Abetz said the report pointed to a quarterly deficit of $488.6 m, which was an improvement from $620m in the same period last year.

“This is a government that backs in strong finances, strong services and strong families, which together deliver a strong future for Tasmania,” he said.

“We recently welcomed nation leading business confidence and unemployment once again.”

But shadow treasurer Dean Winter said the state had suffered credit downgrades as rising debt became a burden on the state budget.

“While the Treasurer congratulates himself, the reality is this: the Liberals have already racked up another $800m worth of net debt this financial year.

Budget generic.

“Every extra dollar spent on interest is a dollar that won’t create a single job, won’t deliver a single hospital bed, won’t build a single home, and won’t keep a single teacher in a classroom,” he said.

“When the Liberals came to office 11 years ago, Tasmania had no net debt. Now we have the worst finances in the country, debt climbing at record speed, and a Treasurer in Eric Abetz who has a plan to cut 2,800 public sector jobs.

“This is a government who have demonstrated they cannot be trusted with Tasmania’s finances, but the Greens and Independents chose to keep them in power anyway, and Tasmanians will pay the price.”