Tasmania's auditor-general, Martin Thompson, has found the state's government business enterprises cost taxpayers more than $584.64 million to keep afloat in 2025-26.
The report, tabled in state parliament on Tuesday, found the businesses returned $158.83 million to the state's coffers but were provided $743.47 million in support through subsidies and equity contributions. They also hit only half of their performance targets.
"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 the sector's total borrowing would increase from $5.39 billion to $8.94 billion by 2030, on top of the general government sector's borrowings, already $6.82 billion and forecast to reach $9.47 billion by the end of the decade. The May state budget projects government support will keep rising, to $909 million in 2029, while planning on increased returns to offset that growth.
Mr Thompson singled out TT-Line, Homes Tasmania and Metro Tasmania as reporting "material uncertainties relating to their ability to continue as going concerns" and their reliance on ongoing government support. In August last year he determined that TT-Line, operator of the Spirit of Tasmania, 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 bungled ship replacement program cost $717 million more than expected and has resulted in years-long delays to the ships entering service.
Treasurer Eric Abetz said the government was already improving the 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." "Premier Rockliff and his ministers have completely checked out, failing to monitor compliance, ignoring advice, and letting essential public entities fall into financial distress," he said.
Economist Saul Eslake, whose analysis of a potential sale of government businesses was commissioned by the government in early 2025 but ended after the Liberals ruled out privatisation during the snap election campaign, said the auditor-general's financial assessment did suggest "careful consideration" should be given to their potential sale. He said the Tasmanian government owns a broader range of businesses than almost any other state or territory government in Australia, and called the ongoing support required a "considerable concern."
Mr Thompson released a second report on Monday, after auditing more than 250 pieces of Treasury Department advice on government business oversight. He found the department "did not always support the treasurer" with advice to enable informed decision-making. "I found that advice often did not include critical analysis of information, provide available options, outline risks or make clear recommendations to respond to known issues," he wrote. The Treasury Department has accepted recommendations to improve the rigour of its reporting and monitoring.