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Tasmania's Interim Budget Trims Peak Debt Forecast but Delays Deeper Cuts

Major reforms are deferred to the May 2026 budget.

Overview

  • The budget projects peak net debt of about $10.4 billion in 2028–29, down from a June Treasury warning of nearly $13 billion.
  • An operating deficit of just over $1 billion is expected this year, with a forecast $5.6 million operating surplus in 2028–29 but four overall deficits across the forward estimates.
  • New savings total roughly $12 million a year at peak through pared-back marketing, office and leasing changes, and procurement tweaks.
  • The government plans to shrink the public service by about 2,800 roles, yet the papers give little detail on how this will be delivered.
  • Fiscal risks include unresolved public sector pay claims, October’s $75 million TT-Line bailout with further support not ruled out, and a December vote on the proposed $1.13 billion Hobart stadium.