2024/25 State Budget Initial Response

In the midst of a worsening affordability crisis, we have been delivered a Budget which prioritises investing in projects over investing in people. A Budget that prioritises $5.1 billion of investment in infrastructure, ahead of investments that support people into long term employment, provide safe and affordable homes for Tasmanians on low incomes, and reduce energy bills over the long term, is the wrong Budget and the wrong priority.

We were looking to this Budget to invest in structural improvements to affordability issues, such as a broad-based program of energy efficiency upgrades that would drastically and permanently cut energy bills for Tasmanians on low incomes. Instead the Budget once again focusses on short-term relief such as poorly targeted, one-off energy bill payments. Payments which will go to every household, no matter how much they earn, with $12.7 million of financial support going to the wealthiest 20% of Tasmanian households.

We welcome the Government’s commitment to deliver all recommendations from the Commission of Inquiry, and particularly those which address the drivers of engagement in the child safety and criminal justice systems. However, most of the expenditure focuses on tertiary interventions and responses to violence against children, rather than providing adequate investment in long-term, preventative and early intervention measures that support family, child safety and wellbeing.

The Government delivered on its commitment to an indexation approach for the community services industry, which goes some way to addressing cost increases. We now need to engage with TasCOSS Members to understand what this indexation increase will deliver and whether it addresses the years of underfunding combined with increased demand and increased costs of doing business. 

A recent survey of TasCOSS Members revealed that due to inadequate funding, 72% were planning to make changes or reduce service delivery to Tasmanians. Many have already started making these cuts.

This means more Tasmanians missing out on support to get stable housing, to nurture their children’s wellbeing, or to acquire the skills they need for secure employment. These are the kinds of investments that set our state up for future success.

As the community services industry calls for fairer funding to ensure Tasmanians don’t miss out on essential services, the Government is on track to pay $1.36 billion on its escalating debt.

There were some welcome smaller scale funding announcements in this Budget for mental health, NILS, LGBTIQA+ Tasmanians, four new Child and Family Learning Centres, but overall, this Budget hits the wrong target by prioritising projects over people.