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Budget 2021-22
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Building Tasmania with the infrastructure our State needs to recover and grow

26 August 2021

Michael Ferguson MP

Minister for Infrastructure and Transport

The 2021-22 Tasmanian Budget supports an ambitious $5.7 billion infrastructure program designed to support jobs, and build safer and more connected communities.

Following on from last year’s record infrastructure program, this year’s Budget and Forward Estimates will include $3.8 billion in investments by the General Government Sector alone with a further $784 million in support investment by other Government businesses and entities.

In addition, the Government will fast track its investment of $385 million for the largest port development in Tasmania’s history with $240 million provided to redevelop the Port of Devonport and funding to fast track the planned $145 million to upgrade the Port of Burnie.

The Government will also support Hydro Tasmania, investing $700 million into the redevelopment of the Tarraleah power station. This will bring the Government’s total investment in critical infrastructure to almost $5.7 billion in works to be completed or underway during the Budget and Forward Estimates period.

The investment will stimulate the economy by supporting jobs in the booming construction and professional services sectors, as well as providing confidence to businesses to train, employ and grow.

The Government’s State roads and bridges program will see more than $2 billion invested over the next four years – with more than $371 million allocated in the current financial year alone.

The 2021-22 Tasmanian Budget and Forward Estimates include:

  • $149 million over four years for the $200 million Greater Hobart Traffic Solution, due for completion in 2027. This set of projects are defined within the Hobart City Deal and include the Derwent River Ferry Service, bus priority measures, active transport facilities, works on the Tasman Bridge, and works to support the efficiency of traffic between Hobart and Kingborough;
  • $118 million over four years for the 10 Year $565 million Midland Highway Action Plan due for completion in 2026, with works now focussed on sections around Oatlands, Ross and north of Campbell Town;
  • $530 million over four years for the new $576 million Bridgewater Bridge, one of the largest infrastructure projects in Tasmanian history;
  • $66 million over four years for the $75 million Launceston and Tamar Valley Traffic Vision, due for completion in 2025;
  • $187 million over four years for the South-East Traffic Solution, due for completion in 2026, which will deliver a four-lane Tasman Highway all the way from Hobart to Sorell;
  • $86 million in infrastructure stimulus funding to support important road and bridge projects including the East Derwent Highway, Railton Main Road, electronic school zone signs, the Tasman Highway, Apsley River Bridge and heavy vehicle rest areas; and
  • $36 million for road upgrades in the North West and West Coast Region.

Included in the Budget is the initial funding allocation to support the duplication of the South Arm Highway between Pass Road and Oakdowns and the $60 million duplication of the Kingston Bypass and grade-separated interchange at Algona Road, south of Hobart.

These major investments are part of our Plan to make our roads and bridges safer and more efficient for motorists and pedestrians.

Infrastructure expenditure will lift across Government including more than $500 million in hospitals and health, more than $400 million in human services and housing and $336 million in schools, education and skills.

Across the State, major projects include $110 million for Stage Two of the Royal Hobart Hospital Redevelopment, and $80 million for the Mental Health Precinct at the Launceston General Hospital.

On top of this, nearly $40 million will be invested in major school redevelopments at Exeter High School and Cambridge, as well as Montello and Lauderdale Primary Schools.

The Budget will also provide $280 million for the Extended Social Housing Build, which is in addition to the $100 million provided for social housing in the previous year’s State Budget.

Now more than ever, it’s vital that we provide better, safer and more modern services to the Tasmanian community. This Budget will ensure we support jobs, connect communities and support the Tasmanian way of life through investing in sporting, cultural and recreational infrastructure.