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The Tasmanian Chamber of Commerce and Industry (TCCI) today called for urgent, credible budget reform centred on expense control and public service reform—not new taxes. The call follows Moody’s decision on 25 November 2025 to downgrade Tasmania’s credit rating to Aa3 (outlook Stable), citing rising debt and interest costs.
“Government must lead by example: rein in expenditure growth, deliver promised public service reform, and honour the commitment of no new taxes,” Mr Bailey said. “Tasmania cannot tax its way to confidence and growth. We need disciplined spending, transparent delivery, and accountability at the top.”
The TCCI has been warning the Tasmanian Government and the Tasmanian people for some time that the recent dramatic growth in budget expenditure is unsustainable. This downgrade shows that the task of reform—through expenditure control and accountability—to return us to a more sustainable path is critical.
TCCI highlighted that despite a stated commitment to reduce the public service by 2,300 roles, headcount has instead risen by hundreds year-on-year. “Businesses have tightened belts for years; government needs to do the same—smartly, not bluntly—by redesigning services, digitising processes and eliminating duplication,” Mr Bailey said.
To restore confidence and protect jobs, TCCI is calling for:
A real Expenditure & Productivity Unit (EPU) with teeth—independent governance, clear multi-year savings and productivity targets, mandatory public reporting each quarter, and authority to drive cross-agency reforms (not just line-by-line cuts).
Accountability for Ministers and departmental secretaries through published performance compacts that link spending to outcomes, with consequences for slippage and rewards for verified savings and service improvements.
Public service reform that delivers the previously promised workforce reduction through natural attrition, vacancy controls, role consolidation and technology-enabled redesign—protecting frontline outcomes while bending the cost curve.
Follow-through on the Government’s tax pledge: no new taxes and no back-door fee hikes, with genuine consultation on any base-broadening or compliance changes to avoid sovereign-risk signals.
Priority for high-return, pro-productivity investments (freight corridors, enabling energy and digital infrastructure) while sequencing lower-return capital and restraining recurrent growth.
“This is a pragmatic plan to stabilise debt, keep energy and government charges competitive, and give business the certainty to invest,” Mr Bailey said. “Tasmania can turn this moment into a credibility reset—if we focus on expenses, reform and accountability, not new taxes.”
Media Contact:
Michael Bailey OAM – Chief Executive Officer, TCCI
“Government must lead by example: rein in expenditure growth, deliver promised public service reform, and honour the commitment of no new taxes,” Mr Bailey said. “Tasmania cannot tax its way to confidence and growth. We need disciplined spending, transparent delivery, and accountability at the top.”
The TCCI has been warning the Tasmanian Government and the Tasmanian people for some time that the recent dramatic growth in budget expenditure is unsustainable. This downgrade shows that the task of reform—through expenditure control and accountability—to return us to a more sustainable path is critical.
TCCI highlighted that despite a stated commitment to reduce the public service by 2,300 roles, headcount has instead risen by hundreds year-on-year. “Businesses have tightened belts for years; government needs to do the same—smartly, not bluntly—by redesigning services, digitising processes and eliminating duplication,” Mr Bailey said.
To restore confidence and protect jobs, TCCI is calling for:
A real Expenditure & Productivity Unit (EPU) with teeth—independent governance, clear multi-year savings and productivity targets, mandatory public reporting each quarter, and authority to drive cross-agency reforms (not just line-by-line cuts).
Accountability for Ministers and departmental secretaries through published performance compacts that link spending to outcomes, with consequences for slippage and rewards for verified savings and service improvements.
Public service reform that delivers the previously promised workforce reduction through natural attrition, vacancy controls, role consolidation and technology-enabled redesign—protecting frontline outcomes while bending the cost curve.
Follow-through on the Government’s tax pledge: no new taxes and no back-door fee hikes, with genuine consultation on any base-broadening or compliance changes to avoid sovereign-risk signals.
Priority for high-return, pro-productivity investments (freight corridors, enabling energy and digital infrastructure) while sequencing lower-return capital and restraining recurrent growth.
“This is a pragmatic plan to stabilise debt, keep energy and government charges competitive, and give business the certainty to invest,” Mr Bailey said. “Tasmania can turn this moment into a credibility reset—if we focus on expenses, reform and accountability, not new taxes.”
Media Contact:
Michael Bailey OAM – Chief Executive Officer, TCCI