Concern as state trims budget with more doing it tough
A top social services group fears for the future of essential programs after the Liberal provincial government announced “decisive action” to tackle rising budget debt.
The Tasmanian minority government’s interim budget for 2025/26 projects debt will rise from the current $5 billion to more than $10 billion in 2028/29.
Finance Minister Eric Abetz is trying to streamline the public sector and plans to cut 2,800 jobs, saying there will be greater efficiency in the next budget due in May.
“If we had done this overnight it would have sent shockwaves through our economy, our agencies and our service delivery,” he said in a statement after announcing his first budget in that role on Thursday. he said.
Tasmania is expected to run a deficit of $1.01 billion in 2025/26, with a weak surplus of $5.6 million in 2028/29.
Mr. Abetz said COVID-19, two state elections and payments to child abuse survivors were among the reasons for the state’s spending level.
The original 2025/26 budget was never passed by parliament because a snap election was called in July after Prime Minister Jeremy Rockliff lost a motion of no confidence.
TasCOSS, the peak body for community services in Tasmania, said it was concerned essential services were being caught up in budget tightening flagged.
Chief executive Adrienne Picone said the council was concerned about the amount of debt being undertaken to fund infrastructure projects.
“This comes amid new research revealing one in seven Tasmanians live in poverty, alongside increasing housing stress and energy unaffordability,” he said.
The Liberals are committed to a new $1.13 billion AFL stadium proposal, which they defend as an economic driver.
Independent crossbench MP Kristie Johnston said it was a “budget hold” and the state should be prepared for cuts to services and public sector jobs in the next budget.
The successful motion of no confidence in June against Mr Rockliff, who returned to power after the July election, was highly critical of his budget management.
Our independent member David O’Byrne was cautious and said it needed to be seen how the surplus could be achieved.
“The figures in this budget are similar to the budget that the previous parliament blocked just five months ago,” he said.
“But there is a noticeable change in tone and recognition of the difficult task at hand.”
