Tasmania will pocket nearly $200 million in extra GST payments under the 2025–26 federal budget handed down tonight, giving the state’s finances a welcome boost.
The Albanese government has allocated $3.778 billion in GST-related payments to Tasmania, $189 million more than last year and $138 million above the Commonwealth Grants Commission’s forecast.
In total, Tasmania will receive $6.309 billion in federal funding next financial year, up from $5.779 billion in 2024–25.
Transport is a major focus, with $200 million for Arthur Highway upgrades and $80 million for a Southern Outlet Transit Lane Extension between Olinda Grove and Kingston.
The project includes road widening, intersection upgrades and new lanes for buses and carpoolers, on top of $200 million already committed by the state for a fifth lane.
The federal government will also put $20 million towards planning and design works for a new Tamar River crossing.
Health funding includes $48 million for Launceston’s Northern Heart Centre, part of an $88 million, three-year investment.
Hobart will receive $6 million for maternity services and the Launceston General Hospital precinct will get $5 million for a new hospice.
On the housing front, the federal budget sets new property price caps under the Help to Buy scheme of $700,000 in Hobart and $550,000 for the rest of the state.
Urban renewal projects in Hobart and Launceston will share $95.6 million, backing developments like Macquarie Point and the Launceston stadium, under a five-year, $305 million plan.
A further $47 million will support the $188 million redevelopment of Macquarie Wharf 6, strengthening Hobart’s Antarctic gateway role.
Other allocations include $200,000 for rainwater tanks in Truwana/Cape Barren Island and $900,000 for the Hillcrest Tragedy Memorial.
Tasmania will also benefit from $43.7 million in Energy Bill Relief and $11.8 million for upgrades to the Tarraleah Hydro Power Station.
ll households will receive a $150 electricity rebate from July 1, with around one million small businesses also eligible.
From July 2026, the tax rate on income between $18,201 and $45,000 will drop from 16% to 15% and fall again to 14% in 2027.
This will save a $79,000 earner $268 in 2026–27 and $536 a year from 2027–28.
Tasmanian state Liberal MP Eric Abetz has criticised the federal Labor government for “ignoring vital reforms that industry have been calling for”.
“It’s massively disappointing the Albanese Government has allocated zero dollars to the much-needed Tasmanian Freight Equalisation Scheme,” he said.
“There are also no reforms to the insurance industry to support our tourism industry.”
