The state’s 2025–26 Budget includes $1.6 billion for roads and bridges, such as the construction of the Northern Access Road
Tasmania has released its 2025-26 Budget, with $5.1 billion promised in infrastructure funding at an average of $1.3 billion a year.
This includes funding of $1.6 billion for roads and bridges, $696.4 million for health and hospitals, $305.3 million for schools and education and $220.4 million for tourism, recreation and culture.
There is new and additional funding of $275.7 million to cover the replacement of the Ashley Youth Detention Centre and the construction of the Northern Access Road.
The Macquarie Point Northern Access Road will provide an alternative route for heavy vehicles to access the Port of Hobart, linking the Tasman Highway with the Macquarie Point Precinct. Construction is expected to start in 2026, with site investigations currently underway.
Funding has also been confirmed for Arthur Highway safety improvements ($200 million), including the widening of Sorell Bridge, and the repair and strengthening of a stretch of the Ridgley Highway ($27.2 million), which form part of Tasmania’s Freight Capacity Upgrade Program.
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The Civil Contractors Federation Tasmania has welcomed the Budget, with CEO Andrew Winch saying that the announcement was a positive signal for local contractors and the communities these projects will benefit.
“This investment is a show of confidence in the importance of infrastructure to our economy and our future,” Winch says.
“We welcome the funding for new and ongoing projects in Tasmania, which will help connect communities, unlock housing and support local jobs. While dollars are flowing to projects, not a cent has been committed to training the civil workforce that’s essential to delivering them.”
However, Winch says more needs to be done to ensure the workforce delivering these projects is supported, with the Budget highlighting challenges in project delivery including an ageing workforce and skills deficit.
“The men and women who build this infrastructure are as important as the funding, and it’s time the Commonwealth also invested in developing the skilled workforce required to deliver on these commitments,” Winch says.
“Without adequate investment in people, these projects risk delay and cost overruns.”