2026/27 Tasmanian Budget wrap-up
On Thursday 21 May 2026, Treasurer, the Hon Eric Abetz MP, handed down the 2026/27 Tasmanian Budget.
The Tasmanian Coalition of Community Service Peaks had called on the Government to deliver on its stated goal of a strong, sustainable, community services industry.
This Budget includes investment in some key wellbeing areas that will make a difference for Tasmanians, however it does not adequately address the level of need facing Tasmanians and community service organisations.
Many of the positive measures announced in the Budget were short-term and temporary, at a time when the uncertainty facing Tasmanians demanded long-term investment.
The Treasurer’s commitment to a ‘caring community’ cannot exist without early prevention support, housing security and sustainable community services, which were not made priorities in the Budget.
The Coalition is deeply concerned by projected reductions in the Community Services output group expenditure over the Forward Estimates, with funding forecast to decline by 13.6%, compared to last year’s budget.
This creates serious uncertainty about the industry’s future capacity to respond to growing demand. TasCOSS will be seeking further detail from the Minister for Community and Multicultural Affairs, the Hon Madeleine Ogilvie MP, about where these reductions will occur and what they mean for services and workforce capacity.
Importantly, there has also been some positive progress, including the first phase of five year funding contracts, movement toward a partnership agreement with the Coalition, and a commitment to review current indexation rates.
Given increasing workforce and operational costs across the industry, TasCOSS is calling for the indexation review to be brought forward and to deliver a transparent, evidence-based indexation formula that reflects the true cost of delivering community services.