Message from the Treasurer

Over the past decade, Tasmania’s resilient and diverse economy has grown to the largest it has ever been.

Tasmania’s economy is now worth a record $40.6 billion.

Our Gross State Product has increased by 26.3 per cent since we came to Government in 2014, and we are the only State to record a positive GSP per capita rise in the last 12 months, outperforming the national average which saw a decline.

Tasmania’s labour market has continued to break records. In April of this year, 281,900 Tasmanians were employed, over 47,000 more than March 2014 when this Liberal Government was first elected.

Our unemployment remains at a record low, sitting at 3.8 per cent in April and backing in a three-year run of unemployment sitting at or below 4.2 per cent.

Tasmania has the highest year-average wage growth in the nation – growing by 4.0 per cent in the year to March quarter 2025, outpacing the national average of 3.5 per cent.

However, we recognise that many Tasmanians are feeling the pinch of rising cost of living pressures.

That’s why the 2025-26 Budget continues the Government’s record investments in cost of living, health, housing and education – the services that Tasmanians care about the most.

This Budget backs business, creates jobs, supports families and builds stronger safer communities.

This Budget includes more than $550 million in cost of living relief including $356.7 million over four years in concessions for eligible concession card holders to assist with the cost of electricity, local government rates, travel on the Spirit of Tasmania and water and sewerage bills.

To meet increasing demand for health services across the State, we are investing an additional $880 million over the next four years. This funding follows the billion-dollar infrastructure agenda in new hospitals and health infrastructure that the Government has been delivering.

The Budget delivers almost $500 million over the next four years, bringing our total investment to $1 billion, to continue to deliver more social and affordable housing, because every Tasmanian deserves a roof over their head and a safe place to call home.

To ensure our children and young people get the opportunities that they deserve, the 2025-26 Budget will invest $9.9 billion over the next four years into education. This includes $307.8 million to provide modern, fit-for-purpose learning environments.

Our infrastructure pipeline is ambitious, and over the next four years this is supported by an investment of $3.5 billion, including new and improved roads and bridges; expanded hospitals and critical health infrastructure; and upgrades to schools across the State.

There is $1.6 billion invested in our roads and bridges over the next four years, $400 million alone over the next financial year.

We will continue to support a strong economy through our 2030 Strong Plan for Tasmania’s Future because we know that a strong economy is necessary to support essential services.

This is a Budget that delivers on the things that matter to Tasmanians. It builds a better Tasmania: now, and for the future.