Tasmania’s peak body for community services has warned the sector has “real concerns” about funding cuts, as the state government wrestles to get the budget under control.
New Treasurer Eric Abetz is set to release his first budget in the opening week of November, but with the document coming well into the financial year, it’s been termed an “interim” budget.
Consultation has now begun for his first full budget, covering the 2026/27 financial year, which is set to be released in May.
However, the guidelines for submissions call for suggestions on investments that could be “reconsidered”, services that could be “transitioned out” and for any new ideas to be offset by other savings:
Guidelines for the pre-budget consultation 2026-27
• “Which programs/projects could be refocused to deliver core outcomes with more streamlined resources or refined focus?”
• “Are there initiatives or investments that could be reconsidered helping balance the budget now, without losing sight of long-term goals?”
• “Are there programs or services that could be transitioned out as the needs of Tasmanians evolve and priorities shift?”
• “Where could government activities be re-calibrated to operate more effectively, while still meeting essential needs?”
• “For any new funding ideas (specifying whether operational or capital), what savings or offsets could be identified elsewhere to ensure the overall budget remains balanced?”
This contrasts with last year’s invitation for submissions, which, among the questions about potential efficiencies, also asked what areas should be a “high priority” for the government, or services that could be offered more successfully.
Adrienne Picone says cuts to community organisations mean Tasmanians “won’t be able to access the services they need, where and when they need them”. (ABC News: Loretta Lohberger)
Tasmanian Council of Social Service (TasCOSS) chief executive Adrienne Picone said it highlighted the interim and first full budgets would potentially contain “some significant cuts for organisations and certainly no new money”.
“This is really concerning for many of our members, particularly in the light of the increase in demand that many organisations are experiencing,” she said.
A spokesperson for the Tasmanian government said it “highly values the work of community organisations and invests significantly in their work”.
“All feedback received through the community consultation process will be considered as part of the normal budget process,” they said.
Organisations forced to downsize to survive
Hobart City Mission’s (HCM) Harvey Lennon said any further cuts to the sector would “push some not-for-profits to the brink”.
“We’ve sadly let a few people go over the last couple of months to help us get by,” he said.
“We’re also looking at options, such as the sale and lease-back of a couple of our properties, just to give us a bit more breathing room, whilst we navigate the current challenges that the community are facing.”
As HCM battles for its own survival, it’s also seeing as much need in the community as ever, doubling the number of food bags it has given out in the last two years.
“That’s a huge increase, and just represents how tough people are finding things at the moment — people who are making decisions between funding doctors’ bills, feeding themselves and feeding their children,” Mr Lennon said.
Harvey Lennon warns further cuts to the sector would “push some not-for-profits to the brink”. (ABC News: Will Murray)
Mr Lennon said even if the government couldn’t entirely fund organisations, partial funding could allow them to leverage further funding from other benefactors.
Ms Picone said many other TasCOSS members were worried they would have to consider cuts to staff or programs if the upcoming budgets cut funding.
“What this will mean is that waiting lists will grow and that Tasmanians won’t be able to access the services they need, where and when they need them.”
Ms Picone said the sector understood the budget was in a “pretty dire shape”, but urged the government not to cut “essential” community services.
“The way we spend our money comes down to how our government makes choices, and we would really urge our government to make the choice to invest in Tasmanians and Tasmanians’ well-being,” she said.
Jeremy Rockliff (centre) reacts as the no-confidence motion passes in parliament in June. (ABC News: Ebony ten Broeke)
Tasmania’s budget troubles well documented
August’s Preliminary Outcomes Report showed a net operating balance of $1.2 billion in the 2024-25 financial year, with net debt reaching $5.04 billion.
Meanwhile, Treasury’s Pre-election Financial Outlook warned that Tasmania’s debt was headed for $13 billion by 2027-28, calling for “immediate and sustained” corrective action.
Economist’s dire warning over Tasmania’s financial state
The no-confidence motion in Jeremy Rockliff’s leadership that passed, triggering July’s state election, listed Tasmania’s worsening finances as one of its key reasons.
Following the state election, the returned Liberal government has convened a multi-partisan budget consultation panel which has been meeting to tackle the debt.
Treasurer Abetz has also retained efficiency and productivity measures and a public sector hiring freeze.
Labor has chosen not to engage with the panel.
Opposition treasury spokesperson Dean Winter said the government was “selling out Tasmanian organisations to pay for their decade of budget mismanagement”.
“Now the Liberals have finally admitted there’s a problem; Tasmanians are set to pay the price for the Liberals’ budget mismanagement with less money for community services and programs,” he said.
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