Jobs Confidence Community a Message from Peter Gutwein Premier of Tasmania and Treasurer
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Jobs Confidence Community A message from Peter Gutwein Premier of Tasmania and Treasurer The challenge we face as we recover and rebuild from the COVID-19 pandemic has two elements, it is both a health crisis and an economic one as well. In the face of the most deadly global pandemic the Importantly, as our economy returns to growth, there world has seen in a century, our response must be is a pathway back to the black with a return to a proportionate and it must be strategic. We entered modest surplus forecast in 2022-23. the pandemic from a position of strength and used our balance sheet as an economic stabiliser, With quiet confidence and cautious optimism, Tasmania delivering the largest economic and social support is returning to a more normal way of life. package in the nation as a proportion of our economy, at over $1 billion. There will be uncertainty and volatility ahead, just as it is across the world and here in Australia, and we will In this Budget we will continue to leverage our not be immune from the impacts of COVID-19. strong balance sheet to stimulate our economy, But it’s how we respond support our community, that matters. attract investment and support jobs through We will take action with the levers targeted initiatives and record we have – to keep us safe and to infrastructure investment. provide security, certainty and confidence for Tasmanians, our Over the next four years this businesses and our community. Budget provides for nearly This Government has done it $5 billion of infrastructure before and we will do it again. investment to support around 25,000 jobs and increase However, just as we worked aggregate demand right across together to get on top of this our economy. virus, we must all continue to work together to rebuild this We will build the beautiful State. intergenerational infrastructure communities need, we’re If we do that we will rebuild backing Tasmanian businesses, Tasmania not just for now, but for supporting their recovery generations to come. and growth, and making it easier for them to employ. Our substantial infrastructure spend, combined with our strong balance sheet means that we can go further to invest in the essential services Tasmanians Peter Gutwein need – into health, education and housing. Premier of Tasmania & Treasurer This is, without a doubt, the most ambitious Budget of our times, with Jobs historic investments to shore-up jobs, investment, opportunities and innovation in our state. We will do this through our $5 billion landmark infrastructure investment, which will support 25,000 jobs and see us return to surplus in two years. We’re supporting and incentivising businesses to employ people, and there’s no better time to hire an apprentice than right now. To give Tasmanians the best opportunity to have the skills they need for the work ahead, we’re investing more into skills and training, into TasTAFE and schools, and helping Tasmanians to gain new skills for future-ready jobs. We want more Tasmanians to participate in, and benefit from, our economic rebound. We’re continuing with our deregulation agenda to cut red tape and unleash Confidence Tasmanian innovation. We know that in these uncertain times, certainty in regulation is paramount to attract and accelerate investment. Initiatives to improve Government services interfacing with the development community are also in place to help them to get to market sooner. As a Liberal Government our philosophy is to grow the economy and we do this by creating the right environment for businesses so that they are confident to invest and create jobs. This is a Budget that has our community at its heart. Our strong economic Community foundations mean we can invest more in wrap-around community services to ensure vulnerable Tasmanians are supported. During the height of the pandemic, we used our balance sheet as an economic stabiliser, delivering the largest economic and social support package in the nation as a proportion of our economy - at over $1 billion. We will continue to provide temporary and targeted measures over the next two years as the impacts of the pandemic continue. We are protecting what is special about our state and investing to future-proof our parks and reserves, and to unleash more opportunities for Tasmanians to participate in the recreational pursuits they love. We will build the intergenerational infrastructure our state needs to thrive, Rebuilding including more homes, better schools, roads, bridges, irrigation systems, as well as a stronger renewable energy assets and health and justice facilities. We’re backing Tasmanian businesses, supporting their recovery and growth, and Tasmania making it easier for them to employ. We’re investing even more into education and skills, to ensure more Tasmanians have the ability to grasp the opportunities and lead a more fulfilling life. We’re investing more into housing and essential services around our State, as well as investments in programs and resources to keep our communities safe. And we’re future-proofing our industries and capitalising on our competitive advantages. We will not only recover through this Budget and Plan, but we will rebuild a stronger and more resilient Tasmania, for all Tasmanians. 2020 - 21 Budget Highlights This is, without a doubt, the most ambitious Budget of our times, with historic investments to shore-up jobs, investment, opportunities and innovation in our State. We will do this through our landmark $5 billion infrastructure investment, which will support 25,000 jobs across the forward estimates and a return to surplus in two years. We’re supporting and incentivising businesses to employ people, and there’s no better time to hire an apprentice than right now. To give Tasmanians the best opportunity to have the skills they need for the work ahead, we’re investing more into skills and training, into TasTAFE and schools, and helping Tasmanians to gain new skills for future-ready jobs. What does this budget mean for Tasmania? A landmark $5 billion infrastructure program to create jobs, grow our economy, boost confidence and strengthen communities in every region. A Tasmanian Jobs Plan to support 25,000 jobs. A record $9.8 billion* for hospitals and health services to build a better health system for all Tasmanians. A record $7.5 billion* for education and training so more Tasmanians can grasp the opportunities ahead. A record investment of more than $300 million* into social and affordable housing projects to support more Tasmanians. * Over 4 years BUDGET AND ECONOMY REBUILDING A STRONGER Retail trade and new home loans are up 14 per cent and 36 per cent respectively, than September last year. Our TASMANIA businesses are the most confident about our economy in the nation, and CommSec has ranked our economic performance The COVID-19 pandemic has been the largest shock in the best in the nation – for the third quarter in a row. generations to our way of life, our society, our economy and our Budget. LANDMARK $5 BILLION In March we responded with the largest economic and social support package in the country, at over $1 billion, and took INFRASTRUCTURE PROGRAM early measures in June to sustain jobs and confidence with our $3.1 billion Construction Blitz. Now, the 2020-21 Budget Our landmark infrastructure program of nearly $5 billion will delivers on our Plan to Rebuild a Stronger Tasmania by build the intergenerational infrastructure our State needs to underpinning jobs, bolstering confidence and investing in our thrive, including more homes, better schools, roads, bridges, community, right around our State. irrigation systems, as well as renewable energy assets and health, hospitals and justice facilities. TASMANIAN JOBS PLAN Landmark $5 billion infrastructure investment Billion Billion Our Jobs Plan will support an estimated 25,000 jobs, grow $5 our economy, boost confidence and strengthen our $5 communities in every region. It includes a landmark $5 billion $4 infrastructure program over the next four years, the largest $4 infrastructure investment to ever be announced by $3 a Tasmanian Government. $3 $2 We will continue to back businesses to recover and make it $2 easier for them to hire. We will support our critical industries $1 to grow and capitalise on our competitive advantages, including renewable energy, tourism and agriculture. $$1 - We will invest even more into education and skills, schools $ - 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Budget Budget Budget Budget Budget Budget Budget Budget and TasTAFE, to give Tasmanians greater opportunities to 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Budget Budget Budget Budget Budget Budget Budget Budget participate in, and benefit from, a strong economy. TotalTo infrastructuretal infrastructur investmente inve overstment four years Total infrastructure investment over four years SIGNS OF ECONOMIC RECOVERY IMPACT ON THE BUDGET Our Jobs Plan is already working. Two thirds of Tasmanians We entered the pandemic from a position of strength, with have returned to work since May and in fact, there are now one of the strongest economies in the nation and a strong more Tasmanians employed than this time last year. budget position. We leveraged our strong balance sheet to support Tasmanians through the pandemic, and we will Two thirds of Tasmanians have returned to work since May continue to do so. Employment, (‘000) Large downgrades in GST revenue and increased expenditure 265 261,400 record in combatting the virus and supporting Tasmanians will result 260 Tasmanians employed in a deficit of around $1.1 billion this year. We will also take on a modest level of Net Debt as we invest to rebuild, 255 however this level of debt continues to be one of the lowest in the country.