Tasmanian Government Businesses Cost Taxpayers Over Half a Billion Dollars, Auditor-General Finds

According to a report tabled in the state parliament by Auditor-General Martin Thompson, Tasmanian government business enterprises cost taxpayers more than $584.64 million to keep afloat last year. The reporting outlet stated that these entities are facing declining profitability, missing their financial targets, and requiring substantial ongoing taxpayer support.

Key Findings from the Auditor-General's Report

• Financial Support: Government businesses received $743.47 million in support via subsidies and equity contributions in 2025-26, while returning $158.83 million to the state.
• Borrowing Projections: Total borrowings for the sector are forecast to increase from $5.39 billion to $8.94 billion by 2030.
• Struggling Entities: Entities such as TT-Line (operator of Spirit of Tasmania), Homes Tasmania, and Metro Tasmania reported material uncertainties regarding their ability to continue as going concerns without ongoing government backing.
• Treasury Oversight: A separate report by Mr Thompson reviewed Treasury Department advice and found a lack of rigour, noting that advice often lacked critical analysis, options, risks, or clear recommendations.

Reactions and Responses

• Treasurer Eric Abetz: Stated that the government is improving oversight, strengthening accountability, and increasing transparency.
• Labor Treasury Spokesperson Dean Winter: Criticized the government for failing to monitor compliance and letting public entities fall into financial distress.
• Economist Saul Eslake: Suggested that the financial assessment warrants careful consideration of the potential sale of certain government businesses.

The Treasury Department has reportedly accepted recommendations to improve the rigour of its reporting and monitoring processes.