2025-26 interim Budget lays the foundation for Tasmania’s future

Tasmania’s economy continues to perform well, with record-low unemployment leading the nation, consistent economic growth, and an additional 51,000 jobs created since 2014.

The resilience of our diverse economy has been on show, with the state navigating high inflation, high interest rates and ongoing global uncertainty.

Treasurer Eric Abetz said Tasmania’s economy is strong, and we are making it stronger through this fiscally responsible budget.

“Over the past seven years, Tasmania has been the strongest-growing state economy in Australia, achieving consistent, broad-based growth,” the Treasurer said.

“However, we must confront the structural fiscal challenges.

“The COVID-19 pandemic, two state elections, a federal election and the associated implementation and compensation from the Commission of Inquiry have all had material impacts on the Budget.

“These impacts are exacerbated by ongoing shortfalls from the Federal Government, volatile interest rates and global uncertainty have not been able to halt our steady growth.

“This is a Government that believes in strong finances, strong services and strong families, which together deliver a strong future for Tasmania.

“We have established the Efficiency and Productivity Unit to begin this important work, it is tasked with conducting performance audits, identifying inefficiencies and assisting agencies to deliver savings without undermining service quality.

“This work is backed by our approach, which will be guided by three interlinking core principles: Protect vital services like health, drive efficiency, and strengthen accountability and transparency.

“This is a sensible and calibrated approach that reinforces the fundamental principles of responsible government.

“The impacts of external shocks - the COVID-19 pandemic, combined with rising service delivery costs, particularly in the delivery of health services, and a tight labour market, have placed sustained pressure on our Budget.

“The 2025-26 interim Budget works towards ensuring Government services and expenditure are operating in a fiscally responsible way.”

The Government is continuing to work with the Multi Partisan Budget Consultation Panel. This panel provides a forum for constructive engagement between government and crossbench members on the long-term issues within the State’s finances.