Tasmania’s government-owned businesses will face tougher accountability rules under new legislation passed by parliament last month.
The Government Business Governance Reforms Bill 2025 is aimed at tightening oversight of the state’s public enterprises, Treasurer Eric Abetz said.
“We know there have been concerns about the governance of our GBEs,” he said.
“We’re addressing these concerns head on, delivering reforms that ensure our government businesses are acting in the long-term interests of Tasmanians.”
The reforms come after the Liberals backed away from selling several GBEs during the most recent state election campaign.
Independent economist Saul Eslake was commissioned to assess which enterprises might be worth privatising.
He advised against selling Port Arthur and TasRacing, a recommendation the government accepted. Hydro Tasmania and Spirit of Tasmania operator TT-Line were also ruled out.
Together, the businesses covered by the reforms manage more than $27 billion in assets and employ over 5,200 Tasmanians.
Under the new laws, GBEs must publish their corporate plans and six-monthly progress reports.
Board turnover will be ensured through director term limits, while ministers gain new powers to issue binding directions that align businesses with state priorities.
The legislation also bans one person from holding both shareholding minister roles and introduces a framework requiring ministerial approval for major sponsorships.
“With our government businesses contributing more than $374 million in returns to the state last year alone, these reforms are key to safeguarding Tasmania’s economic future,” Abetz said.
“These changes will maximise efficiency, strengthen oversight and ensure our government businesses continue to support economic growth, job creation and service delivery across Tasmania.”
The bill marks the first phase of what the government is calling the “most comprehensive” reforms to GBEs in decades.
A second wave is now in the works, covering further legislative changes along with updated Treasury instructions and guidelines.
