Tasmania’s Auditor-General has criticised the financial performance of the state’s government-owned businesses, revealing they required more than $584 million in net taxpayer support during the 2025-26 financial year.
In a report tabled in the Tasmanian Parliament, Martin Thompson said government business enterprises are facing declining profitability, increasing debt levels, and growing dependence on government funding, while achieving only half of their performance targets.
According to the report, Tasmania’s government businesses returned $158.83 million to state revenue during 2025-26. However, they received $743.47 million in support through subsidies and equity injections, resulting in a substantial net cost to taxpayers.
“Declining profitability, increasing borrowings, growing reliance on government support and reduced returns to government are significant trends that warrant ongoing attention and action,” Thompson wrote.
Borrowings Expected to Rise Sharply
The Auditor-General warned that debt across the government business sector is expected to increase significantly over the coming years.
Total borrowings by government-owned enterprises are forecast to climb from $5.39 billion to $8.94 billion by 2030.
This is in addition to debt held by Tasmania’s general government sector, which currently stands at $6.82 billion and is projected to reach $9.47 billion by the end of the decade.
The report highlighted concerns that increasing debt combined with lower returns could place additional pressure on the state’s finances if long-term performance does not improve.
Government Defends Oversight Measures
Tasmanian Treasurer Eric Abetz said the government had already begun strengthening oversight of government-owned enterprises.
According to Abetz, reforms are aimed at:
Increasing accountability
Improving transparency
Strengthening financial oversight
Ensuring government businesses deliver value for Tasmanians
State budget forecasts released in May indicate government support for these enterprises could rise further to approximately $909 million by 2029, although the government expects higher financial returns to offset part of that increase.
Performance Concerns Remain
The Auditor-General’s review found that many government-owned businesses failed to meet financial expectations and collectively achieved only around half of their key performance targets.
The findings are expected to fuel debate over the efficiency, sustainability, and future management of state-owned enterprises as Tasmania faces increasing borrowing requirements and fiscal challenges.
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