Barton Deakin Brief: 2021-22 Tasmania State Budget
30 August 2021
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.
- $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.
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.
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.
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.
- $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.
- $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.
To stay up to date with the affairs of Coalition Governments and Oppositions around Australia, you can follow Barton Deakin on Twitter and LinkedIn. For more information on Barton Deakin please visit our website.