The Tasmanian Chamber of Commerce and Industry notes today’s Preliminary Outcomes Report 2024-25.
The Report shows a $412.5 million deterioration in the Net Operating Balance from the 2024-25 Original Budget and net debt increasing by $1.7 billion since 2024.
The figures underline the scale of the budget repair task.
TCCI welcomes the Government’s commitment to a Multi-partisan Budget Matters Panel and will work constructively with all parties to deliver a sustainable budget position. The Panel is a positive step towards getting the State’s finances under control.
TCCI Chair, Wayne Davy, said the TCCI is unashamedly pro-business.
“Everyone in business knows that the key to sustainability and success is to control your costs and government must do the same,” Mr Davy said.
Mr Davy said the starting point must be disciplined expenditure control and structural reform:
- Cap and contain public sector growth. The public service has expanded by over 30 per cent between 2016 and 2024, outpacing population growth and is unsustainable.
- Fix health spending accountability. Funding has risen sharply with too little transparency about outcomes; every new dollar must be tied to measurable improvements in access and performance.
- Address legacy liabilities. The impact of the unfunded superannuation liability on the Budget must be squarely confronted as part of repair.
“Business cannot be the Budget’s ATM,” Mr Davy said.
“The TCCI opposes new or higher state taxes. Both major parties pledged before the election not to increase taxes. Breaking that promise now would be a breach of faith.”
“With unemployment at historic lows, the priority must be repairing the Budget by controlling costs, not taxing away growth. Business stands ready to partner with the Government, Opposition and crossbench through the Panel to restore fiscal sustainability and kee