Over the next four years, the government says it will invest $9.9 billion into education, which is about 24 per cent of government expenditure. It is a 5 per cent increase in funding for education, largely due to additional federal money through the Better and Fairer Schools Agreement. It is enabling increased supports given to all schools to improve literacy and a new school staff wellbeing program. Over the next four years, 23 schools will share in $296 million for capital upgrades. Children and young people As the government continues implementing recommendations from the child sexual abuse commission of inquiry, there are some funding increases for services for children and families. There is additional funding for out-of-home care and for the advice and referral line. The budget also includes additional funding of $105.3 million over four years for the development of youth justice centres to replace the Ashley Youth Detention Centre (AYDC), which the government hopes to close by early 2028. The funding for 2024-25 for youth justice has also been revised up to cover additional costs for the AYDC and costs related to civil litigation. The government has allocated $3.5 billion, or 34 per cent of its total expenditure, to health in this year's budget. There are no new infrastructure investment projects for health announced in the budget. A new four-year plan to increase elective surgery capacity and to reduce wait times has been allocated $16 million. The current elective surgery plan expires this year. Around $25 million will go towards the redevelopment of Tasmania's two major hospitals — $15 million to the Launceston General Hospital and $10 million to the Royal Hobart Hospital. $2.5 million is being invested to expand pharmacists' scope of practice, and the same amount to diagnostic breast screening projects. Mental health The Devonport Mental Health Hub did not receive any funding in this year's budget, but the government has indicated it will allocate $3.8 million for it in the following financial year. Mental health beds at the Royal Hobart Hospital have been allocated $3.8 million. They were initially meant to be temporary, but will remain in place due to the closure of the St Helens Private Hospital. The beds were established to meet demand before the opening of the Hobart-based Peacock Centre which provides intensive mental health support in the community. A further $16 million has been allocated towards the construction of 15 new beds at the St John's Park precinct in Hobart, which is expected to be completed by 2027, and 12 new beds at the Peacock Centre. Additional funding for St John's Park includes $300,000 to the Child and Adolescent Mental Health Inpatient Unit and Day Facility and $40 million to the Older Persons Mental Health Facility. Law and order Spending on law and order has increased by 7 per cent to $3.8 billion. It includes more than $100 million to support police and emergency service workers and the Tasmanian Prison Service and Community Corrections. The budget includes more than $3.7 million in protective equipment, including hand-held metal detector wands, the trial of tasers for police officers, and more body-worn cameras. The government says it is also investing in programs that aim to break the cycle of offending and help offenders with rehabilitation. Cost of living This year, Tasmanian households will receive a $60 credit on their power bill. Food relief programs will share in $6.7 million, and half-price bus fares will continue for school children from regional areas. Five new units will be added at the Hobart Women's Shelter, using funds from the federal government. There is $467,000 to relocate residents at Indigo Lodge in Launceston while the roof is replaced. A business case will be developed for Homes Tasmania to complete technological improvements. Homes Tasmania has $488,000 per year for a social housing maintenance fund, and $5.2 million for property holding costs in 2025-26, rising to $6.5 million by 2028-29. The budget notes there has been a slight improvement in rental affordability in the past two years, with the average Tasmanian renter spending 26.6 per cent of their income on rent, compared with up to 30 per cent in 2022. Aboriginal affairs Closing the Gap and "other Aboriginal projects" have been allocated $1.4 million in this budget. This is included in the total expenditure for Aboriginal Affairs which is $2.8 million. The government says the money will help continue the work of implementing the national Closing the Gap commitments. The funding also includes $880,000 over two years for the appointment of Aboriginal truth-telling and healing commissioners, which was announced earlier this week, when the government revealed it was withdrawing from the treaty process. Public servants The government wants to see a reduction in government employees as a proportion of the Tasmanian population. In 2024-25, they constitute 5,728 out of 100,000 people. By 2032-33, the government hopes to reduce this to 2022 levels — 5,315 out of 100,000. Government agencies were asked to find $50 million in savings as part of an "efficiency dividend" in 2024-25, increasing to $150 million per year in 2026-27. Heads of agencies will be tasked with finding these savings until 2026-27, when an external Efficiency and Productivity Unit carries it out. The government describes these as "evidence-based savings and performance improvements", including technological changes and "better management practices". Tourism and events The budget includes an additional $57 million over the next four years with the aim of ensuring Tasmania remains a "destination of choice" for visitors. The budget includes $62 million for events including Dark Mofo, the Taste of Summer, the Wooden Boat Festival, Tasmanian Craft Fair and the Bicheno Food and Wine Festival, as well as "off-season" events and some regional events. There is also funding for an upgrade to Princes Wharf No. 1 Shed, which is a regularly-used event venue on Hobart's waterfront. More than $40 million has been earmarked for "new southern Tasmanian sporting facilities". This is understood to include previously earmarked funding for the JackJumpers high-performance centre at Kingston, funding for the $28 million Glenorchy multi-sport facility and also $2 million for gymnastics. A further $7 million has been allocated to a "legacy precinct" at Devonport, including the new Devonport indoor stadium and other community sporting facilities. Funding commitments toward a revamp of the Silverdome, Elphin Sports Centre and a northern sports hub in Launceston remain in place. However, a $12.5 million funding request for a new Home for Hobart basketball facility at New Town appears to have been ignored so far. The government will continue to sponsor the JackJumpers, Hawthorn AFL club and state cricket teams via a combined $11.6 million over the next two years. There is also $1.5 million towards Tasmanian Institute of Sport talent identification over the next three years. Funding for the Macquarie Point stadium is unchanged, except for a $13 million grant to the Macquarie Point Development Corporation for "operating support" over the next two years. Capital contributions from the state government, federal government and the AFL towards the stadium are spread across the next three years, including $65.5 million this year, $158.2 million next year and $378.3 million in 2027-28. That equates to a total of $602 million, with the full cost of the stadium estimated at $945 million. The stadium is currently costed at $945 million. The looming funding shortfall will then be borrowed through the Macquarie Point Development Corporation, once that initial funding of $602 million has been exhausted. The government still intends to sell off parcels of the broader Macquarie Point precinct to help pay down any loan once the stadium development has progressed. However, the stadium must still be approved by both houses of parliament, via a vote that is expected to take place in July. The parliament will vote on whether or not to pass special legislation that will grant the Macquarie Point Development Corporation a planning permit for the stadium. There is also $110 million of combined government and AFL funding for the Devils High Performance Centre to be built at Kingston. About $25 million of that will flow this year, before a $60 million injection next year and a further $25 million in 2027-28. Roads and transport The government will spend $2.3 million on public transport in the next financial year. Overall, $14 million has been allocated for infrastructure and transport services delivery, which is a decrease of about $4 million from last financial year. Some of the projects include: $200,000 for road repairs following the severe weather event in August 2024The Southern Outlet Transit Lane extension project will see $1.2 million$1 million towards the Murchison and Zeehan HighwaysThe Northern Access Road — to service the Macquarie Point stadium precinct — will cost $76 million over the next three years Environment Parks will receive additional funding for wildfire suppression, and additional funding for operational costs. A tracking program for the endangered orange-bellied parrot will be funded to increase knowledge of the species' migration. The Environment Protection Authority will receive 350,000 each year for the next four years to upgrade air quality monitoring in Tasmania. It will also receive 1.5 million each year for four years to improve its information management systems, which the government says will enable the authority "to deliver better outcomes". The state government says it wants Tasmania to be the "number one place to do business" and the "start-up capital of the nation". To achieve this, the budget includes funding to continue the Small Business Growth Strategy 2026, which it is delivering with the Small Business Council of Tasmania and the Tasmanian Chamber of Commerce and Industry. The government is also continuing what it calls its "red tape reduction agenda", and its new permit system that will enable small businesses to trial their concept for 12 months with a single permit. The budget also includes several initiatives to support small businesses with advice and support. Privatisation Premier Jeremy Rockliff announced in his budget speech that six publicly-owned entities would not be privatised or divested: the Port Arthur Historic Site Management Authority, Tasracing, TASCORP, TasRail, Entura and the Public Trustee. It follows a review of public ownership by economist Saul Eslake, with a second report to be released at a later date which "may" suggest other suitable entities for privatisation or divestment. The government will also not pursue a merger of TasRail, TT-Line and TasPorts. This comes after a review by Deloitte Access Economics, which found that merging the entities is "unlikely to deliver a material benefit for Tasmania", including misaligned objectives and issues with competitive neutrality. Mr Rockliff ruled out selling off TT-Line.