Fiscal Sustainability Report

Peter Gutwein,Premier

The majority Gutwein Liberal Government welcomes the Tasmanian Government Fiscal Sustainability Report, released today by Treasury.

The report confirms our finances are strong and for all scenarios analysed, the results show projected fiscal outcomes that are manageable in the short to medium-term.

Importantly, the Report does not take into account the strong plan we took to the recent election that will secure Tasmania’s Future and return our State to surplus in 2022-23.

The report does also not take into account the significant growth in GST receipts the State will receive as a result of Tasmania’s nation-leading economic recovery and the faster than expected national growth as announced in the recent Federal Budget for 2021-22.

While the projections and scenarios in the report do not attempt to predict what will happen in the future, we do have a Fiscal Strategy that will ensure the State’s fiscal position remains sustainable.

Importantly, we are already seeing our plan working with businesses confident, investing and hiring with payroll jobs now 1.7 per cent higher than before the pandemic. In the four weeks to 22 May 2021, payroll jobs grew 0.4 per cent, which was the third highest monthly growth of any State.

Last week, the ABS found that our State Final Demand grew 1.6 per cent in the March quarter, which was the third fastest growth rate of the states, to be 2.9 per cent higher than before the pandemic. This includes business investment which is 6.4 per cent higher than before the pandemic as well.

Later this year we will deliver the 2021-22 Budget that will deliver on the promises we made during the election, and outline a clear pathway back to surplus so we can reinvest even more into essential services.

We have a clear, long-term plan to Secure Tasmania’s Future based on a clear fiscal strategy as well as the responsible budget discipline and track record to deliver it.

The report can be found here: www.treasury.tas.gov.au/Documents/Tasmanian-Government-Fiscal-Sustainability-Report-2021.pdf

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