Tasmania's Fiscal Cliff: A Grim Financial Outlook

0:00This is Cory, and here's what is making news across Adelaide right now. Tasmanius Treasury Department just released a fiscal sustainability report painting a grim picture of the state's finances. Without any government action, NetDeck climbed to $129,500,000,000 by 2040. That jumps to $146,000,000 when adding public corporation debts. Debt servicing costs would skyrocket from 2% of operating revenue to over 50% within 15 years. Devices would grow increasingly hard to handle, pushing the state toward a fiscal cliff. Financial buffers are already depleted, leaving Tasmania poorly equipped for economic shocks like pandemics. It holds the equal lowest credit rating among Australian states, with further downgrades on the horizon. The report stresses that no single step, like service cuts or chasing economic growth, will suffice. Revenue's tie heavily to federal grants, which make up 65% of Tasmania's total, far above the national average of 45%. Boosting productivity helps but takes time.

1:05Government officials say the challenge is big, but fixable with broad measures. Their eyeing cuts to superannuation for high-earning public servants and have set up an efficiency unit for savings. A cabinet minister highlights record low unemployment and projects like a new stadium as bright spots ahead. A quick thank you to our sponsor of today's episode. It looks like a pillow, it sounds like headphones, built for comfort and sound, S-O-L-L-I, S-O-L-L-I, S-O-L-L-L-Pillow dot com.