The 2021-22 state budget does not deliver for Tasmanian families, Labor leader Rebecca White has told Parliament.
In her budget reply speech on Tuesday, Ms White said Tasmanian rents were the least affordable in the country and wage growth in the state had effectively stalled.
She said the cost on essential items such as groceries, power and water bills, council rates, childcare and petrol prices had dramatically shot up.
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"Liberal economic management is not working for Tasmanian families," Ms White said.
"The housing crisis is pushing Tasmanian families to breaking point.
"The median cost of renting a three-bedroom home in Tasmania is now $400 a week - up $120 a week since this government came to office.
"That means renting families have $6000 less each year to spend on essentials such as groceries, school fees and new clothes for their kids."
She said the Australian dream of home ownership in Tasmania would remain just a dream for many families.
"Working families are being pushed further and further out just so they can find somewhere affordable to live," Ms White said
"Away from their kids' school. Away from their kids' friends.
"And further away than ever from owning their own home."
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She said the average Tasmanian house price was almost $400,000 outside of greater Hobart.
"How this government expects any working family to save between $80,000 and $120,000 for a deposit is beyond me when they're paying nearly $1000 a fortnight in rent," Ms White said.
She said debt was forecast to spiral to record levels.
"Over the next four years, we will be spending more than $300 million servicing this debt," Ms White said.
"The debt will grow by $2 million over the next four years of this budget.
"By the end of this decade, Tasmania's debt will be larger than the entire state budget.
"By 2035, interest payments will take up 10 per cent of the budget.
"That's the cost of the entire Department of Justice and the entire Department of Police, Fire and Emergency Management, combined."
Labor's treasury spokesman Shane Broad said the state had been debt-free for 10 years when the Liberals came to government.
"Now Treasury has already warned the government in June that with the unsustainability of the state's finances Tasmania's debt could grow to as much as $30 billion by 2035," he said.
Finance Minister Michael Ferguson later said Ms White's budget reply was pointless, uninspiring, and contained no economic plan or initiatives.
"Tasmania's worst kept secret has now been confirmed: Labor has absolutely no alternative budget or plan," he said.
Mr Ferguson said the 2021-22 state budget delivered better services and infrastructure for Tasmanians.
Greens leader Cassy O'Connor will deliver her budget reply in Parliament on Wednesday.
The party will also release its alternative budget.
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