The 2026-27 Budget continues the Tasmanian Government’s major investment in hospital and health infrastructure across Tasmania, with more than $844 million allocated to deliver new and existing projects across the State.  

Minister for Health, Mental Health and Wellbeing, Bridget Archer, said this capital investment will support improved patient care and modern health services for Tasmania to meet demand for decades to come.   

“Our Government is delivering a strong economy and caring community, along with the health infrastructure Tasmanians need and deserve,” Minister Archer said.  

“This Budget continues our strong investment in modern hospitals, mental health facilities and emergency care across every region of the State. 

“In the North, the Budget invests over $363 million in the Launceston General Hospital redevelopment, including the Mental Health Precinct and the Northern Health Complex,” Minister Archer said. 

“The Launceston General Hospital redevelopment is a critical investment in the future of health care in Northern Tasmania, and this latest funding again reaffirms our commitment to these critical upgrades. 

“Work is also continuing on the life-saving Northern Heart Centre and the dedicated Launceston Hospice, which will provide hospice and respite care for people with life-limiting conditions and their families and carers.” 

In the North West, the Budget delivers funding to upgrade the North West Regional Hospital, including $14.5 million for an expanded ambulance drop-off area and Emergency Department expansion, as well as a new $40 million Mental Health Precinct providing a safe and supportive 22-bed mental health inpatient unit to replace the Spencer Clinic. 

In the South, investment continues in the Royal Hobart Hospital redevelopment – Expanded Stage 2, with our $130 million investment to deliver more treatment points and improved patient care spaces in the Emergency Department. 

The Budget also supports the Royal Hobart Hospital Pharmacy redevelopment, cardiology angiography works, and the new Diagnostic Breast Imaging Clinic which is now operational. 

Funding is allocated to provide a contemporary Older Persons Mental Health facility at St Johns Park to replace the Roy Fagan Centre. This facility will better cater for older people with mental illness and complex dementia. 

“We are getting the balance right. 

“Even with tighter settings, frontline services remain the priority. 

“We are making the savings needed, whilst continuing to deliver the services and build the infrastructure Tasmania must have now, and for the future.”

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