Tasmanian State Budget features spending cuts over the next four years

The net operating balance is estimated to be a deficit of $596.7m in 2026-27, with net operating balance returning to a surplus of $192.8m by 2027-28, as a result of spending cuts of up to $1.4b across the forward estimates. Net debt is forecasted to be $8.4b as at 30 June 2027, increasing year on year until it is set to fall to $9.5b by 2029-30.

The unemployment rate remains low between 4-5 per cent, and population growth is expected to remain below the long-term average, forecast to grow by 0.5 per cent in 2026-27.

Revenue measures

Total revenue in 2026-27 is estimated to be $10.2b, representing an increase of $693.1m compared to the 2025-26 Budget. Taxation revenue is estimated to be $2.1b, accounting for 21 per cent of total revenue.  

Consistent with the previous year’s State Budget, no new taxes or rate increases were announced.  

Tasmania continues to rely heavily on Commonwealth funding (including GST), which remains the dominant source of revenue relative to own-sourced taxation, accounting for 66.3 per cent of total revenue in 2026-27. 

The Budget continues to support housing through the $20,000 First Home Owner Grant for eligible new home builds; however no new property tax concessions (such as stamp duty relief or land tax changes) were introduced. There appears to be no extension of the first home buyers’ duty exemption, which expires on 30 June 2026.

The Government is also progressing on their 2024 Election commitment to introduce a 5 per cent short-stay accommodation levy, which will impose an additional charge on homeowners who list their properties for short-term accommodation with legislation before parliament (to commence no earlier than 1 January 2027).

If you wish to discuss the Tasmanian State Budget announcements, please reach out to a Grant Thornton Partner today.

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