The first state budget of the Hodgman government's second term contains no major surprises, largely servicing commitments made during the 2018 election campaign.
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The $2.6 billion infrastructure spend is the big ticket item, with Treasurer Peter Gutwein dubbing it the "centrepiece" of the budget.
This includes:
- $1.1 billion for roads and bridges;
- $475.6 million for hospitals and health;
- $205.3 million for human services and housing;
- $192.2 million for schools and education;
- $169.7 million for law and order;
- $142.2 million for tourism, recreation and culture;
- $54.2 million for ICT to support service delivery; and
- $21 million for other infrastructure projects.
In his budget speech, Mr Gutwein says Tasmania is on the cusp of a new "golden age", setting the expectation for the next four years of a Liberal government in the state.
Here's a snapshot of what's being funded and when.
- Broken down, the budget contributes:
- $1.8 billion to health (29.8 per cent of the budget);
- $1.6 billion to education (26.5 per cent);
- $590.6 million to public order (9.8 per cent);
- $262.3 million to transport (4.3 per cent);
- $164.4 million to housing and community amenities (2.6 per cent); and
- $832.7 million to other areas (13.8 per cent).
Other areas include economic affairs ($295.7 million), environmental protection ($95.4 million), general public services ($291.9 million), and recreation and culture ($149.7 million).
HEALTH
A new private hospital will open adjacent to the Launceston General Hospital.
Treasurer Peter Gutwein in his budget speech said Calvary Health Care will finalise the location within the future health precinct and bed down future plans for the $100 million investment over the next nine months.
Mr Gutwein said Calvary believed the co-location would improve facilities and services, regardless of whether patients were in the public or private system.
Mr Gutwein said recurrent health spending was $341 million a year higher than when the Liberals came to power.
He said the government would invest $7.6 billion into health over four years.
Mr Gutwein said there will be 478 more hospital staff employed over the four years and 76 more hospital beds progressively opened.
EDUCATION
Legana primary school students will have to wait at least three years before the first funds flow for a new high school development.
The first $5 million for the anticipated project is expected in 2021, planned in the forward estimates of the 2018-19 Tasmanian budget.
The budget was handed down by Treasurer Peter Gutwein on Thursday.
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Infrastructure spend was a big feature of the education portfolio, with a $163.5 million investment for government schools and $15.5 million for TasTAFE infrastructure.
The state government has committed new funding of $179 million over six years in total.
HOUSING
There is no new money for affordable housing other than an extra $25 million announced for the government's Affordable Housing Strategy before the budget was released.
The strategy will receive $45 million over next financial year and $125 million over the forward estimates.
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The strategy's second phase is expected to provide 1500 more affordable homes and assist 2000 households.
Of the $125 million over five years, $20 million will be set aside for housing for people living with disability.
HUMAN SERVICES
A $24 million boost to the state's child protection budget was announced prior to the 2018-19 state budget being handed down.
Measures included in the renewed commitment to child protection include: an extension of the out-of-home care age limit to 21; additional support for the out-of-home services; and increased learning incentives for people in out-of-home care.
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The money will flow relatively evenly across the forward estimates, with $6 million forecast to be spent on additional support for out-of-home care services each year to 2022.
It is expected that $1 million will be spent each year until 2021 on extending the out-of-home care age.
Support for young people exiting care is predicted to cost $50,000 each year for the next three years.
- $24 million boost for child protection, announced this week
- Money to flow relatively evenly across forward estimates
EMERGENCY SERVICES AND JUSTICE
A major overhaul of Tasmania’s prison and justice systems has been promised.
The Northern prison, upgrades to the Burnie Magistrates and Supreme Court complex, and a new police station for Longford are among the projects to be delivered.
A significant portion of the funds for the first stage of the new prison, however, has not been allocated until 2022-23, which is beyond the forward estimates.
The Longford station is the only project of the three that has been budgeted for within the next financial year.
New equipment for Tasmania Police, Tasmania Fire Service and the State Emergency Service have also been promised, with $500,000 allocated each year over the next four years for volunteer units.
Drones have been flagged for Tasmania Police, as well as additional front-line resources.
At least 125 officers have been promised over the next four years, but the largest portion of that funding has not been allocated until 2021.
Of the 125 officers, six will be trained as specialist ice investigators, with two for each drug squad in the state.
INFRASTRUCTURE AND TRANSPORT
Improving traffic conditions in Launceston and the Tamar Valley is estimated to cost $75 million but only $35 million will be spent on the initiative to 2022.
The North-West and West Coast road upgrades, meanwhile, are estimated to cost $50.1 million but less than half of that money ($24.3 million) will have flowed across the forward estimates.
The $2.6 billion infrastructure spend in the 2018-19 state budget - described as the budget's "centrepiece" - is being touted as a record infrastructure spend for Tasmania - but that includes any federal funding that has already been committed.
Funding for roads and bridges in 2018-19 will total $316.7 million, 42.2 per cent of the infrastructure spend for the year.
But with increased infrastructure development comes increased pressure on the construction industry.
That is why a construction sector roundtable will be convened in July and led by Infrastructure Minister Jeremy Rockliff.
- 'Record' infrastructure spend the budget's 'centrepiece'.
- Construction sector roundtable to be convened to address increased infrastructure development.
- 9300 jobs expected to be created by infrastructure spend over four years.
TOURISM
The government has coughed up less than half the money needed for its plan to develop Tasmania’s next “iconic” multi-day hike in its 2018-19 budget.
Premier Will Hodgman announced the $20 million project during the election but only $9 million has been allocated over four years.
The Liberals would need to win the next state election and allocate an additional $11 million to fully fund the project by its expected completion date of 2022.
Funding required for the Cradle Mountain experience also stretches beyond the forward estimates but $51 million of the $65 million needed for the project has been locked in.
And upgrades to the Cradle Mountain visitor experience have been fully funded, resulting in a total of $72 million of funding in the budget for the popular tourism hot spot.
Treasurer Peter Gutwein said the money would “fully develop the potential that exists at Cradle Mountain to create what we believe will be an experience in the North that will be as important as MONA in the south”.
The government has allocated $39.3 million towards tourism infrastructure in the 2018-19 financial year, or about 5 per cent of total infrastructure spending.
There’s also $12.6 million for tourism marketing across the state and $6.8 million to grow the hospitality industry.
There’s been $4 million earmarked over four years to establish a fund to attract new events to Tasmania and $1.4 million to develop tourist drives in the North, North-West and South.
Mr Gutwein said Tasmania’s tourism sector was “a runaway success”.
“Be it MONA, or the Great Eastern Drive, Cradle Mountain, the rugged beauty of the West Coast or the world-class vineyards of the North-East, Tasmania now has the world beating a path to our door,” he said.
“For a state that in the past has often been left off the map, we are now the destination that everyone wants to visit, and our accommodation sector is in overdrive to keep up with demand.”
Mr Gutwein said there’d been “phenomenal” investment in visitor accommodation, with projects underway in Hobart, Launceston, Devonport, the Tasman Peninsula and the East Coast.
“It’s really a very exciting time to be in the Tasmanian tourism industry,” he said.
SUPERANNUATION
The state's superannuation liability is expected to reach $7.31 billion by June 2019.
This cost to the budget is four times the allocated health expenditure in 2018-19.
Treasury has said the cost of the state's superannuation liability will increase by 53.9 per cent over the next 14 years and peak in 2032-33.
A projection within the budget papers showed the liability will be completely paid off by June 2080.
The superannuation scheme's total cost depends on a number of factors, however, including the amount of benefits paid by the scheme and the amounts received by government workers.
GOVERNMENT-OWNED BUSINESSES
The government is expected to take in $409.7 million in dividends and tax equivalents from its government-owned businesses in 2018-19.
It will receive a significant boost from Hydro Tasmania which will return $67.7 million in dividends after a big improvement in its financial position following the 2015 energy crisis.
It will return $34.1 million in tax equivalents and TasNetworks will return $31.6 million.
The Motor Accident Insurance Board will return $50.1 million, TasNetworks $35.9 million, Aurora Energy $16.4 million, and TasPorts $5.6 ,million.
Sustainable Timbers Tasmania is expected to return a $15 million dividend.
TT-Line's $40 million will be placed in a special vessel replacement fund.