The City of Hobart has endorsed a responsible, balanced budget and annual plan for the 2025–26 financial year, with a strong focus on community wellbeing, sustainability, and sound financial management.
With total operating expenditure of $183.9 million, the City is forecasting a modest surplus of $1 million, reflecting its commitment to financial sustainability in line with its Long-Term Financial Management Plan.
Hobart Lord Mayor Anna Reynolds said the budget was shaped with the community front of mind.
The proposed 3.5% increase – the lowest in Greater Hobart and expected to be among the lowest in Tasmania - in rates revenue equates to just $1.35 per week, or a $70.22 average yearly increase. Commercial ratepayers will also benefit from a reduced cap on rate increases, down from 10% to 5%, easing the transition to Capital Value rating.
Every effort has been made to keep rates increases to a minimum while maintaining essential services and ensuring long-term financial sustainability.
The budget includes significant investment in services, including:
- $18.4 million for managing our parks, reserves, sports facilities and Aquatic Centre;
- $8.6 million for maintaining our roads and footpaths and supporting transport;
- $5.1 million for keeping our city clean;
- $3.9 million for managing household waste, recycling and FOGO services;
- $3.9 million supporting community events and programs;
- $2.6 million for tourism services such as the Tasmanian Travel and Information Centre and Salamanca Market;
- $2.6 million for creative programs;
- $1.4 million for economic development initiatives; and
- $1 million for positive ageing and youth programs.
The City has allocated $36.8 million towards our capital works program to maintain and deliver new open spaces, playgrounds, rivulet rewilding, roads and footpath maintenance, building and facilities upgrades, and plant and equipment renewal throughout the year, including:
- $15.8 million in new assets, including $13.5 million for the Greater Hobart Ferry Expansion; and
- $12.3 million of the renewal of City assets, including:
- $5.2 million for road renewal;
- $1 million for bridge renewals;
- $1 million for footpaths renewals;
- $980,000 for renewals at the Doone Kennedy Hobart Aquatic Centre; and
- $625,000 for stormwater renewals.
- $2.3 million for asset upgrades, including:
- $600,000 for Queenborough Oval Changerooms Redevelopment; and
- $360,000 at the Doone Kennedy Hobart Aquatic Centre for the sauna and spa.
- $3.5 million for plant and equipment, including the commencement of electrifying the City's light vehicle fleet.
The City will maintain a modest debt level of $35.8 million, with no new borrowings and $3.3 million in existing debt scheduled for repayment.
The City of Hobart's Annual Plan for 2025–26 outlines 43 key actions, that shape our work for the upcoming year.
Key initiatives include our first heritage strategy, major waste and climate resilience programs to improve safety for our community, expanded urban greening and tree planting, support for zero-emissions living. There are also a range of sustainable transport projects to help increase safe transport choices for all and to shape a cleaner, greener, and more connected future such as progressing a potential Battery Point Foreshore and finalising three new passenger ferry terminals at Lindisfarne, Wilkinson's Point and Sandy Bay.
The Plan also includes new designs for a mountain bike pump track to benefit locals and attract new visitors to the city and a riverside walkway. A new circular economy facility at McRobies Gully, a mountain visitor and transport hub at Halls Saddle as well as modifications to improve parking options by extending opening hours at some of our multi-storey carparks and improving carparking at the aquatic centre.
Quotes to be attributed to Hobart Lord Mayor Anna Reynolds:
(On the Budget) "We know many in our community are feeling the pressure of rising living costs.
"That's why we've worked hard to keep rate increases as low as possible, while continuing to deliver the services and programs our residents deserve value.
"This budget strikes the right balance—supporting our community, maintaining essential services, and investing in Hobart's future.
"This budget positions us strongly for the future and I would like to thank the community for their input during the budget engagement process."
(On the Annual Plan)"This Annual Plan reflects our commitment to thoughtful investment, community wellbeing, and a sustainable future for Hobart.
"It's about delivering what matters most to our residents while preparing our city to thrive in the years ahead."
