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Policy initiatives > Budget highlights > Tasmania 2025-26
The 2025-26 budget was released by the Rockliff Government on 29 May 2025. Budget highlights relating to skills and training are provided below. Direct links to relevant budget papers are provided for quick and easy access.
The Payroll Tax Rebate Scheme provides payroll tax relief to businesses operating in Tasmania that employ apprentices, trainees and youth employees. The Scheme was extended to 30 June 2025 and applies to all new apprentices and trainees employed before that date. The payroll tax rebate is provided for a 2-year period from the date that apprentices and trainees are employed and 1 year from the date that youth employees are employed (Budget paper no. 2 volume 1: Service delivery, p. 89).
The estimated cost of Payroll Tax Assistance is $5.588 million in 2025-26 and $3.067 million in 2026-27 (Budget paper no. 2 volume 1: Service delivery, p. 87).
This initiative will provide $1 million funding over 4 years to support Hamlet, which provides training and work-readiness skills to people facing barriers to employment, and to grow the tourism and hospitality workforce (Media release, 7 May 2025; Budget paper no. 2 volume 1: Service delivery, pp. 281 and 283).
$500,000 is allocated over 4 years ($125,000 in 2025-26) to provide ongoing funding to the Troublesmiths program, which supports highly disadvantaged young people to access the services and support that will assist with future engagement with employment and economic participation (Budget paper no. 2 volume 1: Service delivery, pp. 282 and 286).
The Australian government will invest $13.2 million through the National Skills Agreement (NSA), with funding matched by the Tasmanian government to create the Tasmanian Clean Energy Centre of Excellence at TasTAFE's Burnie campus. An additional $800,000 will be allocated through the Australian government's Turbocharging TAFE Centres of Excellence initiative. Features of the centre include:
In 2025-26, the Australian government will provide estimated funding of $73.3 million to support skills and workforce development services in Tasmania through the NSA and National Partnerships.
Funding from the Australian government under the NSA is estimated at $56.5 million in 2025-26 (Budget paper no. 1: The budget, p. 129).
The total Skills and Workforce Development National Partnership Payments are estimated to be $16.8 million for 2025-26, comprising:
$450,000 is provided in 2025-26 for planning for the establishment of a fit-for-purpose automotive training centre in Southern Tasmania to ensure TasTAFE can deliver quality training in a safe environment to meet the needs of the automotive industry and learners (Budget paper no. 2 volume 2: Service delivery, p. 98).
$125,000 is provided in 2025-26 for the continuation of 26TEN Tasmania: Tasmania's Strategy for Adult Literacy and Numeracy 2016-25. This program provides services to Tasmanian adults to grow functional literacy, numeracy and digital skills (Budget paper no. 2 volume 1: Service delivery, pp. 23 and 25).
In 2025-26, the revenue from appropriation allocated to Output Group 3.1: Skills and Workforce Growth is $132.495 million (Budget paper no. 2 volume 1: Service delivery, p. 291), and the expenses for the output are estimated at $205.568 million (Budget paper no. 2 volume 1: Service delivery, p. 296).
TasTAFE is a not-for-profit government business that operates under the TasTAFE (Skills and Training Business) Act 2021, and it is the largest public VET provider in Tasmania, providing the majority of vocational training for Tasmanian businesses (Budget paper no. 2 volume 2: Service delivery, p. 97). It is estimated that TasTAFE will receive $110.941 million in grant funding and $27.793 million from the sales of goods and services in 2025-26 (Budget paper no. 2 volume 2: Service delivery, p. 99).
The key ongoing deliverables for TasTAFE are:
$19.8 million is allocated over 4 years ($600,000 in 2025-26) to deliver modern, fit-for-purpose VET facilities and industry standard equipment at colleges, secondary schools and trade training centres (Budget paper no. 2 volume 1: Service delivery, pp. 42 and 46).
Prior year budget highlights can be accessed by clicking on the buttons below.
NCVER (National Centre for Vocational Education Research) 2025, Budget highlights: Tasmania 2025-26, VET Knowledge Bank, NCVER, Adelaide, <https://www.voced.edu.au/vet-knowledge-bank-policy-initiatives-budget-highlights-tasmania-2025-26>.
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