Tasmania’s net debt hit $6.5 billion at the end of the last financial year, up almost $1.5 billion from $5.04 billion a year earlier, according to the state’s Preliminary Outcomes Report for 2025-26.
The result has sparked a political clash today, with Treasurer Eric Abetz claiming the figure as a win and Shadow Treasurer Dean Winter calling it a sign of fiscal “destruction”.
Abetz pointed to the fact that the $6.5 billion came in around $310 million lower than what had been forecast in the 2026-27 budget.
“The report shows that net debt at 30 June 2026 was $6.5 billion, around $310 million lower than forecast in the 2026-27 budget,” he said.
“It also shows the fiscal balance improved by $15.2 million compared to the estimated outcome.”
Winter said the Treasurer’s claim that debt was down should be withdrawn as it was untrue.
“Eric Abetz is only claiming debt is down because net debt exploded by less than was expected,” he said.
“That is not paying down debt.”
He said the statement was potentially in breach of the Ministerial Code of Conduct and accused the government of “slashing services while at the same time overseeing the destruction of Tasmania’s budget position.”
The lower-than-expected debt was largely driven by an additional $305 million in cash held in specific purpose accounts, rather than reduced borrowings.
Borrowings themselves rose by $1.75 billion over the year to cover the government’s cash deficit.
The net operating deficit came in at $1.07 billion, worse than the $923 million estimated earlier this year, driven by higher employee costs from wage agreements and a $166.4 million jump in supplies and consumables.
Abetz said the government had “delivered significant wage outcomes for doctors, police, teachers and other frontline workers, which are reflected in this result.”
He said the 2026-27 Budget set out “a clear pathway back to sustainability” and that the report reinforced “why budget discipline matters.”
The figures are unaudited, with final results due by October 31.
