The Economic Risks of the Tasmanian Government’s Approach to Budget Repair
McKell Institute Budget Report No. 3
The McKell Institute’s third State Budget report examines the economic risks associated with the Tasmanian Government’s approach to budget repair. Drawing on Treasury modelling and recent economic data, it outlines the potential impacts of spending cuts, including rising unemployment, job losses, people leaving the labour market and Tasmania, and reduced economic activity. The report also considers the risk that Tasmania’s economy is performing more poorly than Treasury initially anticipated and urges the Government to reconsider its approach in favour of more balanced measures.
October 2026
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