TT-Line will receive a $506 million bailout over four years in next week’s state budget, the Tasmanian government announced today.
The Spirit of Tasmania operator has been under mounting financial pressure as cost overruns on its new ferries and the Devonport berth pushed it to the brink of insolvency.
Infrastructure Minister Kerry Vincent and Treasurer Eric Abetz revealed the figure on Friday, six days before the 2026-27 budget is handed down.
The “equity injection” is intended to cover past capital cost overruns rather than fund new spending.
It comes on top of a $75 million bailout in November’s interim budget and a $400 million increase to TT-Line’s borrowing capacity approved during the 2025 election campaign.
“Any investment into TT-Line benefits the entire state,” Vincent said.
“This equity is not adding to the cost of the project. It is paying for past direct capital cost overruns.”
TT-Line chair Ken Kanofski told a parliamentary committee this week the project’s total cost blowout had reached $717 million.
The auditor-general declared TT-Line insolvent in August 2025, a finding the board disputes.
Abetz said the bailout would give the company financial certainty.
“TT-Line is a frontline service for Tasmanians and we are investing in it,” he said.
“We are doing this by providing TT-Line with equity to reduce its debt and maintain a manageable and sustainable fiscal position.”
Labor MP and shadow treasurer Dean Winter called the announcement the latest chapter in “the biggest infrastructure stuff-up in Tasmania’s history”.
“There is no greater example of this waste than the Spirits fiasco and it’s getting worse every day,” Winter said.
“Every year Tasmanians will now be paying close to $30 million for what is effectively a ferries fiasco tax, just to service the interest on this bailout.”
Winter said Tasmanians would be paying the price for the Spirits “for generations to come”.
The two new ferries are due to begin Bass Strait services from October 31, years behind the original schedule.
The full state budget will be handed down on May 21.
