Barton Deakin Brief: 2021-22 Tasmanian State Budget

Date: Aug 2021

Barton Deakin Brief: 2021-22 Tasmania State Budget

30 August 2021

Overview

On 26 August the Tasmanian Premier and Treasurer, the Hon. Peter Gutwein MP delivered the 2021-22 Tasmanian State Budget.

Summary of Economic Indicators & Outlook

Revenue: $7.257 billion.

Net Debt: $1.704 billion. Forecast to improve to $501.3 million in FY2022-23.

Operating deficit: $689.8 million. Forecast to reach $39.4 million a surplus in FY2023-24.

Economic Growth: 4 per cent forecast.

Employment: 4.5 per cent.

COVID-19 Response

$44 million in COVID-19 response and recovery measures including public housing initiatives on energy efficiency, hotel quarantine extension and the women’s strategy.
$7.83 million for COVID-19 mental health services.
$8.52 million for vaccine costs.
$3.5 million for the COVID-19 coordination centre.
$1.2 million for the COVID-19 Small business financial counselling and advice support program.

Infrastructure

A total of $3.8 billion infrastructure spending, including:

$2 billion for roads and bridges.
$503.7 million for hospitals and health.
$404.9 million for human services and housing.
8 million for law and order.
$335.8 million for schools, education, and skills.
$183.6 million for tourism, recreation, and culture.
$145.4 million for ICT support to service delivery.

Major projects include:

$700 million for the redevelopment of the Tarraleah power station.
$240 million for the Port of Devonport redevelopment.
$80 million for the Tamar River bridge.
$30 million for the new Bridgewater Bridge.
$23.4 million for the Greater Hobart Traffic Solution.
$23.9 million for the Digital Transformation Priority Expenditure Program.
$55.2 million for roads of strategic importance.

An additional $783.8 million in equity contributions to government business and other entities. This includes $65 million to Stadium Authority Trust.

Energy and Resources

$15 million to support the work of Renewables, Climate and Future Industries Tasmania.
$3 million to partner with industry to invest in a crumb rubber plant to turn end-of-life tyres into product.
$600,000 to facilitate the launch of a second Electric Vehicle Change Smart Grants program.
A two-year waiver of duty on the purchase of new and second hand electric and hydrogen fuel cell vehicles to incentivise the uptake of these vehicles by reducing up-front costs.
Extending the Exploration Drilling Grants Initiative until 2025 with $1.5 million.
$1.15 million to the Tasmanian Timber Promotions Board to promote Tasmanian timber products across the world.
$12 million Winter Energy Supplement as a one-off discount of $125 per household for consumers eligible for annual electricity pensioner concession.
$3.75 million for the Renewable Energy Schools Program. This includes the roll-out of 100 solar panels to over 100 government schools.
$8 million for Renewables Tasmania to implement the Tasmanian Renewable Energy Action Plan and Tasmanian Renewable Hydrogen Action Plan.

Health

The Tasmanian government has announced an increase of $900 million to health, coming to a total $10.7 billion in health funding over the next four years:

$198 million for an additional 50 beds to accommodate increased demand in major hospitals.
$18 million to enable private hospitals to support the increased demand in public hospitals.
$110 million for Royal Hobart Hospital Redevelopment as part of a 30-year plan for the Royal Hobart Hospital precinct.
$66 million for an additional 20,000 elective surgeries and 2,3000 endoscopies to address surgery demand in response to the COVID-19 pandemic.
$40.8 million into the Tasmanian Ambulance fleet to provide 30 new ambulances, 48 paramedics and upgrades.
$9 million for the implementation of voluntary assisted dying legislation next year.
$108 million in additional funding to mental health services.
$52 million has been allocated to implement a range of palliative care initiatives, including community palliative care and home and community based palliative care.
$15.7 million to implement the Health Workforce 2040 strategy.

Education

The budget $8 billion for education, skills and training over 4 years:

$45 million for the TasTAFE Facility Upgrades and Transition Fund.
$37.6 million for 100 extra TasTAFE Teachers.
$11 million for the Trades and Water Centre of Excellence.
$6 million for 6 new child and family learning centres.
$5.3 million for the improvement of literacy for Tasmanian students, including funding for 40 additional literacy coaches.
$3.803 million for free access to speech pathologists, psychologists and social workers in child and family learning centres.
$6 million to support students impacted by trauma.

Tourism

$50 million for a Tourism Industry Interest Free Loan Program and $1 million will support travel agents affected by the extensive constraints on travel.
Qantas payroll tax reimbursement of up to $1 million per annum for 10 years from 2014-15, ending with a final reimbursement of up to $250 000 in 2024-25.
$145 million into parks and reserves, including:
- $4 million for the Cradle Mountain Visitor Experience.
- $1.2 million for the Ben Lomond National Park.
$3.1 million for National and World Heritage Projects.
$3 million for the Freycinet Tourism Icons Project.

Housing and Community

$615 million into social and affordable housing, and homelessness initiatives.
- Includes building 3 500 new homes by 2027, adding an additional 2 000 homes to the current plan to deliver 1 500 homes by 2023.
Increase in the tax-free threshold for Land Tax from $24 999 to $49 999, increase the start of the middle tax band threshold to $50 000 and increase the top tax band threshold from $350 000 to $400 000.
Increase the First Home Owner Grant from $20,000 to $30,000.
Increased in the value threshold for the First Home Buyer Duty Concession and Pensioner Duty Concession from $400 000 to $500 000.
$15 million for the Local Community Facilities fund program to support community associations and sporting clubs to improve their facilities and infrastructure.
$100 million has been allocated to implement the whole-of-government Child and Youth Wellbeing Strategy.
$4 million towards building capacity in Aboriginal Community-Controlled Organisations to better meet the needs of Tasmanian Aboriginal people.
$970,000 to support major Aboriginal policy reform initiatives. Includes drafting new Aboriginal heritage legislation and finalising the Review into the Model of Returning Land.

Arts and Culture

$12 million to support artists and arts organisations.
$4.8 million for the cultural and creativity industry operational assistance.
$18 million for Securing Tasmania’s Iconic Events to create iconic events and festivals in Tasmania.
$8 million for events support and attraction fund to attract events and visitors to Tasmania.

Sport and Entertainment

$83.5 million for the redevelopment of the Derwent Entertainment Centre and Multi-Sports facility.
$42.15 million for the Royal Agricultural Society of Tasmania (RAST) Hobart Showground Redevelopment.
$10 million for football club upgrades.
$12.415 million for the Local Community Facilities Fund.
$2 million for the Industry Training Initiative for improved training for jockeys and other racing industry career opportunities.

Community Safety

$47.5 million for the new Southern Remand Centre.
$6.4 million for the Emergency Services Operations Centre.
$9.425 million for 50 additional police officers.
$10.6 million to ensure a consistent level of policing in rural and remote police stations when police officers are on leave.
$2.4 million for Family Violence Electronic Monitoring to continue Tasmania’s electronic monitoring of high-risk family violence perpetrators.
$8.8 million for legal assistance sector support to provide free and low-cost legal services.
$6 million for the Emergency Services Personnel and Volunteers Health and Wellbeing Program. This provides psychologists and other services to emergency services personnel.
$18 million to for measures to build bushfire safety in communities and to support firefighters and volunteers in our fire brigades and State Emergency Service units.
An additional $1.5 million per annum to the Emergency Services Personnel and Volunteers Health and Wellbeing Program.
$567 million for the Tasmanian Government Radio Network.
$46 million for the upgrade of critical police ICT systems.

Regions and Agriculture

Rebates of up to $10,000 on carbon farming advice sought from experts to create carbon credits for sale.
$1.8 million for the Fisheries Digital Transition Project.
$50 million to achieve the annual farm-gate value target of $10 billion by 2050.
$10.2 million for a new Ag-Protection Package to future-proof the industry and assist manage risks to primary industries.
$5.6 million for a new Community Farming Partnerships Program, including $450,000 to extend the Safe Farming Tasmania Program.
$2.6 million for a Rural Business Resilience Package.
$250,000 for Aboriginal cultural fisheries to identify options for Indigenous and cultural fisheries development.
$15 million for the Tasmanian Agricultural Precinct to develop a Tasmanian Agricultural Precinct in Launceston.
$3 million for the Agricultural Development Fund supporting research and development in the agricultural sector.
$2 million for the Strategic Industry Partnership Program supporting co-investment with agricultural peak bodies to support sustainable industry growth.
$100,000 for Wine Tasmania to improve the resilience of the wine sector and fund emergency smoke testing.
$2 million for the primary producer safety rebate scheme. This includes cash-back rebates to farmers that implement safety measures that reduce work-related injuries and death in farming.

Jobs and Small Business

Payroll tax relief to businesses operating in Tasmania that employ apprentices, trainees and youth employees until 30 June 2022.
$10.625 million for the Jobs Hub Initiative to build four new jobs hubs in regional communities.
$20.5 million for the Working Tasmania Program. This aims to address barriers to employment and to support employers to employ.
$2 million for the Small Business Incubator and Accelerator pilot program.
A $20 million business support package in partnership with the Australian Government to support businesses affected by the flow-on effects of lockdowns interstate.
$300,000 for Regional Chambers of Commerce, to support their small business members.
$150,000 for the Tasmanian Small Business Council to advocate and support its members.

Further Information

The Premier’s Budget Speech

The Budget Papers

For more information, contact John Griffin on +61 419 901 159, Jack de Hennin on 424 828 127, or Julia Kokic on 405 955 887.

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