The deterioration of the Tasmanian budget means that net debt is expected to reach $10 billion, or 20% of gross state product (GSP), by 2027-28. This paper outlines how the state could increase revenue by auctioning salmon licences, reforming gambling taxes, increasing mineral royalties, and increasing motor vehicle stamp duties and registration fees. If changes to the GST were also made, $11.4 billion could be raised in the five years to 2030.  

The 2025-26 budget forecast a significant increase in the state’s debt. This is despite the fact that the state will generate increased revenues. The cost of the yet-to-be-built Macquarie Point Stadium has become a lightning rod for debate about the state government’s priorities. New policies to raise additional revenue are needed.

Tasmania’s budgetary problems are not isolated from the mainland. The Commonwealth Government raises most tax revenue, of which it distributes a significant share to the states and territories, who use it to fund and manage public services. This means that the Commonwealth could play a constructive role in improving Tasmania’s financial situation. 

At the Commonwealth level, there are two relatively simple reforms to the GST that could benefit Tasmania. A broader range of Commonwealth Government policy reforms could raise significant additional revenue for all Australian states and territories.

This paper shows how four measures at the state level could raise $2.5 billion by 2030. This includes

• adopting a salmon licence auction policy similar to Norway, which could raise $1.7 billion
• raising taxes on Electronic Gaming Machines to 45%
• increasing mineral royalty arrangements to be in line with the national average
• increasing motor vehicle stamp duties to 10%, and registration fees to 50%.