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Tasmania’s 2021-22 State Budget

Economic Policies, Tasmania | 26th August 2021

The 2021-22 Tasmanian State Budget is an uncharacteristically big-spending affair, with some $2½ billion in new spending over the next four years funded by ‘windfall gains’ from Tasmania’s share of GST revenue, and buoyant stamp duty collections, together with $500-$600 million more borrowing than had been previously envisaged – although because last year’s deficit was a lot smaller than previously forecast, the State Government is still able to project lower levels of net debt than it did in last year’s Budget. The Budget paints an optimistic, but not unrealistic, outlook for the Tasmanian economy. But there’s absolutely no appetite for any kind of meaningful state tax reform – which leaves Tasmania’s finances vulnerable in the event that the GST ‘winds’ start to blow in a different direction, as well they might.

2021-08-27 Tasmanian State Budget Assessment


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