TASMANIA’S ECONOMIC STRENGTH ON A PATHWAY TO SURPLUS

Michael Ferguson MP, Treasurer

Tasmania’s strong financial position and the strength of our economy has enabled us to deal with the challenges of the COVID-19 pandemic, while delivering for all Tasmanians and supporting the Tasmanian community.

The strength of the Tasmanian economy is evident in the State’s labour market.

Our unemployment rate is at a record low of 3.8 per cent, lower than the national unemployment rate of 3.9 per cent, and third lowest of all Australian states.

In April, full-time employment hit its highest level ever, with 171,100 Tasmanians in full-time jobs.

This is 11,100 more full-time jobs than the same time last year, more than half of which were won by women.

Treasury forecasts in the Budget that unemployment will continue to remain low, while labour force participation is expected to remain above its long-term average.

The Tasmanian Liberal Government’s investment of $5.6 billion in infrastructure over the Budget and Forward Estimates will support jobs across the broader Tasmanian economy, with more than 11,000 people anticipated to be employed over the next four years.

In 2020-21, the Tasmanian economy recovered strongly from the shock caused by the pandemic in the previous year, growing by 3.8 per cent.

This growth was the second strongest growth recorded of all jurisdictions, and more than double the growth experienced by the national economy.

In March 2022, retail trade reached $665.9 million, the third highest level on record. Pleasingly, retail trade is 15.3 per cent higher than before the pandemic and a staggering 45.4 per cent higher than when we came to Government in March 2014.

Reflecting the confidence within the community, our economy is expected to grow by 3¾ per cent in 2021-22, well above the long-term average.

In 2022-23, the Tasmanian economy is forecast to grow by a further 2¾ per cent, with growth increasing to three per cent in 2023-24.

As our economy continues to strengthen, population growth is also anticipated to increase to around the long-term average, growing by 0.7 per cent in 2022-23 and then 0.9 per cent in 2023-24.

The Tasmanian Liberal Government is committed to the sustainable and responsible management of the State’s economy and Budget.

The Budget is forecast to return to a Net Operating Balance surplus of $19.1 million in 2023-24, increasing to $32.2 million in 2024-25, and $30.5 million in 2025-26.

This is a comprehensive Budget, a responsible Budget, a Budget that shows we can lead with both our hearts and minds, to secure a future that delivers for all Tasmanians.