Tasmanian auditor: State enterprises will need $1.8bn in support — ABC News Australia
State-owned enterprises in the Australian state of Tasmania that are experiencing financial difficulties will require about $1.8bn in taxpayer support, state auditor Martin Thompson said. This was reported by ABC News Australia.
According to his report, in the 2025–2026 financial year, state-owned enterprises transferred $158.83m to the state budget while receiving $743.47m in support through subsidies and capital contributions. Thus, their maintenance cost taxpayers $584.64m. The enterprises also met only half of their own targets.
Tasmania's May budget provides for an increase in support to $909m in 2029. At the same time, the authorities expect revenues from these enterprises to grow, which should partially offset the costs.
Sector borrowing
Thompson pointed to declining profitability of state-owned enterprises, rising borrowing, dependence on government funding, and a reduction in their returns to the budget. According to his forecast, the sector's total borrowings will increase from $5.39bn to $8.94bn in 2030.
Separately, borrowings by the general government sector already stand at $6.82bn and are forecast to reach $9.47bn by the end of the decade.
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TT-Line's condition
The auditor noted that TT-Line, Homes Tasmania and Metro Tasmania had reported significant uncertainty about their ability to continue operating without ongoing government support and funding.
In August 2025, Thompson declared TT-Line, the operator of the Spirit of Tasmania ferries, insolvent. The company disagreed with this conclusion, citing the state's financial support. In the 2025–2026 financial year, it received a $74.5m capital contribution and is to receive another $506m over the following four years.
According to ABC News Australia, the vessel replacement programme cost $717m more than expected and caused a multi-year delay in bringing the new ferries into service. Tasmania's Treasurer Eric Abetz said that the government is strengthening oversight of state-owned enterprises, accountability and transparency.
In a separate report, Thompson reviewed more than 250 Treasury documents regarding oversight of state-owned enterprises and concluded that the department did not always provide the Treasurer with information needed for informed decisions. The department agreed to improve monitoring and the quality of recommendations.
