First tranche of Government business governance reforms passes the Parliament

The Tasmanian Government has delivered on its commitment to strengthen the governance of Government-owned businesses, with the Government Business Governance Reforms Bill 2025 passing both Houses of Parliament.

Treasurer Eric Abetz said the Bill is the first tranche of the most comprehensive reforms to Government Business Enterprises and State-owned Companies in decades.

“We know there have been concerns about the governance of our GBEs,” the Treasurer said.

“We’re addressing these concerns head on, delivering reforms that ensure our Government businesses are acting in the long-term interests of Tasmanians.

“Our businesses manage assets worth more than $27 billion, employ over 5,200 Tasmanians, and deliver essential services that underpin our economy.

"They must be accountable, transparent and focused on the needs of the Tasmanian community.”

The Bill introduces key reforms, including:

*              Strengthened accountability – requiring all Government businesses to publicly release Statements of Corporate Intent and half-year progress reports.

*              Clearer direction – empowering Shareholding Ministers to issue joint directions to ensure businesses align with Tasmania’s long-term interests.

*              Improved governance – ensuring boards are renewed regularly, with limits on directors’ terms and enhanced transparency around reappointments.

*              Continuous disclosure – placing obligations on all businesses to ensure that Shareholding Ministers are kept informed on key developments. 

*             Community focus – requiring decisions and strategies to be made in the best interests of Tasmanians to support improved service delivery of essential services.

*              Enhanced framework – ensuring that the two Shareholding Minister roles cannot be undertaken by the same person.

*              Greater oversight – creating a sponsorship framework and requiring the businesses to seek prior written approval from Shareholding Ministers for sponsorships over a certain monetary threshold.

“With our Government businesses contributing more than $374 million in returns to the State last year alone, these reforms are key to safeguarding Tasmania’s economic future,” the Treasurer said.

“These changes will maximise efficiency, strengthen oversight, and ensure our Government businesses continue to support economic growth, job creation and service delivery across Tasmania.”

The Bill was shaped by extensive consultation and feedback from business, industry and community stakeholders.

The Government will now progress the second tranche of reforms, including further legislative amendments and updated governance documents, including Treasurer’s Instructions and Guidelines.