Tasmanian Budget 2006-07

The first budget of the recently re-elected Lennon Government was brought down by Treasurer Michael Aird on 15 June 2006. Health was the budget’s key focus, with a total spend of $1.3 billion over the next four years.

1. Budget at a Glance
  • Forecast economic growth 3.5%
  • Population growth 0.6%
  • Consolidated Fund Surplus of $3.8 million
  • Deficit expected to be $84 million
  • Spend on infrastructure of more than $631 million
2. Tax Cuts and Fiscal Strategy
  • Commitment to further $80 million in tax cuts
  • A new Fiscal Strategy for the next five years. Principles and targets include:
    • Maintaining a competitive business and taxation environment
    • Maintaining a sustainable budget position
    • Tasmanian General Government Sector to remain debt free
    • Unfunded superannuation liability to be extinguished by 2033
3. Health

The budget presents a concentration on health with $1.3 billion dedicated to this area, an increase of $346 million over four years

  • Plan to hire 450 more nurses, doctors and specialist for the Royal Hobart Hospital over the next four years
  • Dental funding more than $20 million
  • Establishment of State wide mental health service including a 24 hour triage service
  • Refugee and Humanitarian Arrivals Clinic expansion – $4 million
4. Education

The Education budget is $947 million with major commitments to increases in teachers’ salaries and a reduction of class sizes to below 25 students

  • Recruitment of additional 89 teachers – $22.5 million
  • Launching into Learning program – $12.6 million
5. Tourism

$88.3 million over four years was committed to promote Tasmania as Australia’s premier tourism destination.

  • New marketing campaign – $12 million
  • Parks infrastructure – $7.8 million
6. Farm Sector

The Sustainable Management of Agriculture Resources in Tasmania (SMART) farming package of $22 million over four years is to foster growth in the rural sector.

  1. Water initiatives to enhance productivity – $7.5 million
  2. Dairy and vegetable industry re-establishment of research and training centres  – $6 million
7. Infrastructure

The overall budget commitment for infrastructure is $631 million.

This includes Health – $106 million, Roads – $332 million, Schools – $39 million and Community Sporting Facilities – $15.5 million

Highlights of the infrastructure commitment are:

  • Royal Hobart Hospital redevelopment – $41 million
  • New Kingston High School – $30 million
  • Tasmanian Museum and Art Gallery redevelopment – $30 million
  • Hospital Medical Equipment Fund (including 100 new ambulances) – $25 million
  • Lyell Highway – $14 million
  • Launceston General Hospital new emergency department – $12 million
  • Regional Hospitals – $11.5 million
  • Sisters Hill – $10.2 million
  • Brooker Highway – $10 million
  • Launceston Aquatic Centre – $ 5.3 million
  • Tasmanian Hockey Centre – $4.5 million