Local government secures funding for 'Planning Pool' in state budget
On Thursday 29 May we saw the release of the 2025–26 State Budget.
The Tasmanian Government is predicting a net operating surplus1 by 2029–30, but most commentators have called into question the feasibility of achieving this, while also raising concerns over the forward estimates cash deficits. Net debt is predicted to reach $10.8 billion by 30 June 2029.
In a significant win for LGAT, the Government will commit $300,000 over two years to support the Planning and Development Capability Program (Planning Pool) that was part of our State Budget Priority Statement. This funding will be matched by LGAT. The program will establish a central pool of planning technical staff to support councils in development readiness.
However, the State Planning Office funding decreases by $200,000 to $2.20 million in 2025–26, and then by $1.54 million (30 per cent) in 2026–27. Further, the “Housing and Planning Output Group” drops from $40 million in 2025–26 to $7.33 million in 2026–27. This Output Group focuses on “the development and delivery of strategic policy, project and program initiatives in support of economic development, including population policy, urban renewal, and regional growth and planning.”
The Office of Local Government’s funding is increasing to $3.659 million (a $1.273 million increase from 2024–25) but is then forecast to fall back to $2.471 million before tapering to $2.264 million in 2028–29. The 2025–26 increase includes the Future of Local Government Review – Priority Reform Program, the LGAT Planning and Development Capability (Planning Pool) funding and the Central Coast Council Waterfront Renewal Initiative.
Read our State Budget 2025–26 Fact Sheet.
1 This is the difference between revenues and expenses generated from regular business operations.