Some of Tasmania’s peak business and industry groups have welcomed the state government’s decision to scrap the Department of State Growth and create a new infrastructure-focused agency.
Premier Jeremy Rockliff announced the shake-up in his State of the State address on Tuesday, unveiling a new department called Building Tasmania.
The agency will be headed by Minister Kerry Vincent and focused on delivering housing, roads and infrastructure projects.
The restructure will also create a separate economic development entity and a new body combining Tourism, Events and Creative Tasmania.
The changes are expected to free up more than $250 million and include a reduction in public service headcount.
Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said the decision was overdue.
“For years, we’ve said that the Department of State Growth has become a behemoth delivering confusion instead of clarity,” he said.
“Today’s decision shows the government has listened.”
But Bailey said the restructure must involve genuine industry input.
“This can’t be a name change with the same problems underneath,” he said.
“If the government wants this restructure to work, business and industry must be in the room from day one.”
Property Council interim executive director Michael Kerschbaum offered cautious support.
“If delivered properly, the changes should address some of the structural issues that have held up delivery, but the proof will be in the pudding,” he said.
“What we would call on now is some dialogue with industry to help get the model right, followed by swift action to embed these changes.”
Master Builders Tasmania CEO Jenna Cairney said the announcement was “a positive step in the right direction”.
“What we can’t have is more delays in delivery while the bureaucratic deck chairs are shuffled,” she said.
Cairney noted Tasmania approved 2,510 new homes in the year to January 2026 – short of the 5,162 required annually under the National Housing Accord.
Tasmania Forest Products Association CEO Nick Steel said the inclusion of forestry in the new Economic Development entity was “a great fit” for the $1.2 billion industry.
Rockliff said the changes would ensure the state service was “agile, streamlined and client-centred”.
He said Building Tasmania will “get things built” and “get things done”.
“It will supercharge delivery of the housing, the roads, the infrastructure our state needs to be fit for the future,” the premier said.
The transition is expected to take place over the coming months.
