TAS 2023 Budget - Quick guide for the built environment
The Tasmanian 2023-24 Budget was announced on 25 May by Treasurer Michael Ferguson, who discussed their plan for dealing with priorities including the cost of living crisis, health and education. We’ve done the digging on relevant highlights for the built environment to inform your business’s next strategic move.
Community
Community, sports, tourism and events is considered a winning sector of the budget with infrastructure commitment totalling $108.4 million. This includes $230 million towards the Macquarie Point Urban Renewal project in Hobart, an entertainment, arts and sporting precinct. Significant sports funding includes $60 million to cover development of the Tasmanian AFL High Performance Centre, $34.5 million to cover the Tasmanian AFL Team Package which will accommodate the new AFL and AFLW teams, and $65 million directed to Stadiums Tasmania for redevelopment of Launceston’s UTAS Stadium. With $27.5 million of the budget, delivery of the Northern Suburbs Community Recreation Hub in Launceston can also progress. Additionally, funding was also committed to encouraging sports participation and new events, signalling demand for events and recreation developments.
Sources: Tasmanian 2023-24 Budget Paper No 1, ABC: Winners and Losers from the Tasmanian Budget
Health
The budget commits $161.3 million to hospitals and health infrastructure including $30.5 million for the Royal Hobart Hospital Redevelopment and $18.7 million to deliver Burnie and Glenorchy Ambulance Stations. Launceston General Hospital will receive $8 million for redevelopment including establishment of a Mental Health Precinct. Other key investment includes, $15 million is directed to the Launceston General Hospital Helipad. This funding is intended to alleviate some pressures within the health system but not all, which may indicate more funding to come in following years, and continued infrastructure and development.
Sources: Tasmanian 2023-24 Budget Paper No 1, ABC: Winners and Losers from the Tasmanian Budget, ABC: Tasmanian Budget has few clear winners, several looming threats
Justice
Law and order infrastructure will receive $63 million including $50 million to deliver Maximum Security Accommodation at Risdon Prison and $23.1 million towards two new facilities, New Southern Remand Centre and New Northern Correctional Facility.
Source: Tasmanian 2023-24 Budget Paper No 1
Housing
Established in 2022 Homes Tasmania, who support access to affordable, social and specialist housing for vulnerable people, was allocated $372.8 million in this budget. This contributes to Homes Tasmania’s 10-year, $1.5 billion plan, providing 10,000 new affordable homes by 2032. This will aid Homes Tasmania initiatives including Build Up Tassie, which provides work building affordable housing for 16-24 year-olds who want to work in the construction industry. Additionally, this funding will deliver additional 20 homes for the Annie Kenny Women’s health Shelter and Hobart Women’s Shelter Emergency Response, and provision of 50 homes via the Family Violence Rapid Rehousing Program among other social housing needs. The Private Rental Incentive Scheme Enhancement incentivises property owners to rent their homes affordably to those on lower incomes, and received over $3 million in this budget.
Investment in affordable housing and rental incentives for property owners may indicate a strong pipeline of work for Build to Rent, affordable and social housing sectors. However, because the establishment of Homes Tasmania repositioned responsibility of the plan for 10,000 new homes by 2032 out of the government budget and within the new body, determining whether funding within this budget towards housing increases or decreases overall is difficult.
Sources: Tasmanian 2023-24 Budget Paper No 1, Tasmanian 2023-24 Budget Paper No 2, ABC: Winners and Losers from the Tasmanian Budget
Transport & Infrastructure
Although there are not major new spends, many ongoing projects received funding. This budget includes funding of $270.1 million towards the $786 million New Bridgewater Bridge, one of the most significant infrastructure projects in Tasmania’s history, which is hoped to be open by the end of 2024. Additionally, $291 million is directed to Tasmanian Irrigation Pty Ltd for Irrigation Projects, Energy on Farms initiatives and the Lake Leake Dam Life Extension Project. Key rail projects investment includes $197.4 million to Tasmanian Railway Pty Ltd and the Tasmanian Freight Rail Revitalisation Program.
Sources: Tasmanian 2023-24 Budget Paper No 1, ABC: Winners and Losers from the Tasmanian Budget
Education
Schools, Education and Skills total infrastructure is budgeted at $128.3 million to upgrade facilities across five of the state's schools, including $5 million worth of major redevelopments at Montello Primary School and Lauderdale Primary School, as well as $8.5 million towards the new K-12 Sorell School. Funding of $4 million is dedicated to developing six new Child and Family Learning Centres. Additionally, TasTAFE upgrades have been allocated $10 million, and an additional $10 million will fund the establishment of a Water and Energy Trade Centre of Excellence.
Sources: Tasmanian 2023-24 Budget Paper No 1, ABC: Tasmanian Budget has few clear winners, several looming threats
