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.
- Water initiatives to enhance productivity - $7.5 million
- 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
