Tasmania's Treasurer Eric Abetz has warned of a 'tough' state budget and refused to rule out cuts to frontline jobs, including nurses and teachers. The comments come as the government faces a projected $1.01 billion deficit for 2025/26 and has asked agencies to find $150 million in annual savings from 2026/27, with a plan to reduce 1,800 public sector positions by 2032.
When asked directly whether nurses or teachers could be cut, Abetz said, "I'm not going to rule those matters in or out," emphasizing that the government will focus on "jobs that are behind the scenes." He stressed the need for a balanced budget to protect frontline services in the long term, warning that rising interest costs could otherwise jeopardize service delivery.
Premier Jeremy Rockliff also stopped short of guaranteeing no frontline cuts, stating, "We're continuing to invest in frontline services and that's what we will do." The government has ruled out new taxes and asset sales.
Adding to fiscal pressure, the government confirmed a $506 million bailout for TT-Line to cover capital cost overruns on the Spirit of Tasmania ferry project. Independent MP Peter George said the timing of these announcements was no accident, suggesting the minority Liberal government is clearing bad news before the budget.
Independent Clark MP Helen Burnet questioned where the money for the bailout would come from, asking if it means deeper cuts to health, community services, education, and the environment. Greens leader Rosalie Woodruff expressed concern, saying, "It's deeply disturbing to hear the premier has refused to rule out cuts to frontline jobs."
The state budget will be handed down on May 21.
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