Incoming treasurer Eric Abetz has announced plans to create a multi-partisan budget panel to tackle Tasmania’s growing debt, which is forecast to soon hit $13 billion.
Abetz, who will be sworn in on Monday, said he had already reached out to crossbench members and opposition parties to establish a united approach to managing the state’s finances.
“In a minority government in a minority parliament, we will need to bring together the parliament to ensure that we can get the right budget framework to ensure the future viability of Tasmanian budgets,” he said.
The announcement comes as Tasmania faces a major fiscal challenge, with Treasury documents showing the state’s debt is on track to reach between $11 billion and $13 billion unless corrective action is taken.
The new multi-partisan panel will include representatives from the Liberal government, Labor, the Greens and crossbench members and is expected to meet as soon as possible.
Industry, business, trade unions and community groups will also be included in the discussions, Abetz said.
Wayne Davy, chair of the Tasmanian Chamber of Commerce and Industry, welcomed the collaborative approach.
“We want to see the economy continue to grow because the economy has been strong and unemployment low. We’re over $40 billion in state gross product and we want to see that continue,” he said.
Abetz acknowledged that the latest budget forecasts predict the state will not return to a surplus until 2028-29, though he refrained from committing to bringing that timeline forward before officially taking office.
Asked about potential solutions, Abetz expressed his reluctance to raise taxes, though he said the panel would consider all options.
“I think everybody knows my instinct and it is not to raise the tax burden on our fellow Tasmanians,” he said.
“That said, we will be open as the panel to look at all possibilities.”
Abetz is now hoping he won’t end up as the “shortest-lived treasurer in Tasmania” as Labor signals a no-confidence vote on the first day of parliament in 11 days’ time.
