Auditor-General Flags Billions in Taxpayer Support for Struggling Tasmanian Government Businesses

A new report reveals Tasmanian taxpayers are propping up state-owned entities, including the Spirit of Tasmania operator, to the tune of billions.

By Latrobe Times Tassie Desk · 27 October 2026 ·Updated 3 November 2026 AI-assisted

Tasmania’s government businesses cost taxpayers more than $584.64 million last year, and support of about $1.8 billion will be needed as several of them, including Spirit of Tasmania operator TT-Line, face financial difficulties, Auditor-General Martin Thompson has found, ABC News reported.

In his report, tabled in state parliament today, Mr Thompson also found the businesses were not meeting their financial expectations and had hit only half of their performance targets.

In 2025-26, government businesses returned $158.83 million to the state, but received $743.47 million in support through subsidies and equity contributions.

“Declining profitability, increasing borrowings, growing reliance on government support and reduced returns to government are significant trends that warrant ongoing attention and action,” Mr Thompson wrote.

He forecast that total borrowings by the sector would rise from $5.39 billion to $8.94 billion in 2030. That is on top of general government sector borrowings, already $6.82 billion and forecast to reach $9.47 billion by the end of the decade.

“TT-Line, Homes Tasmania and Metro Tasmania all reported material uncertainties relating to their ability to continue as going concerns, and their reliance on ongoing government support and funding arrangements to meet future obligations,” he wrote.

In August last year, Mr Thompson determined that TT-Line was insolvent. The company disagreed, citing its financial backing from the state. It received an equity contribution of $74.5 million last financial year and is receiving another $506 million over the next four years. The ship replacement program cost $717 million more than expected.

Treasurer Eric Abetz said the government was already improving its oversight of government businesses, “strengthening accountability, increasing transparency and ensuring these businesses deliver for Tasmanians”.

Labor treasury spokesperson Dean Winter said government businesses were “on the brink”.

Correction, 3 November 2026: An earlier version of this story included TT-Line’s 2025-26 loss and ferry write-down figures, which were not in our source, and several sentences of commentary that were not drawn from the Auditor-General’s report. These have been removed, and the Treasurer’s response has been added.