A surge in redress and civil claims from child sexual abuse survivors after a harrowing inquiry will cost Tasmania $571 million more than expected.
Newly released budget estimates put the island state’s liability for future abuse redress and civil claims at $647 million as of June 30.
That’s an increase of $571 million from one year prior.
The state in June agreed to pay $75 million to 129 former detainees at the still-operational Ashley Youth Detention Centre who had launched legal action.
Tasmania is implementing 191 recommendations from the inquiry, which examined sexual abuse suffered by children in state care over decades.
In its final September report, the inquiry, which was told the centre was a “monster”, said it remained a live and current risk of abuse and called for it to be shut as soon as possible.
The government pledged in 2021 to close the centre by the end of 2024 but has since pushed the date back as part of broader justice reforms.
Treasurer Michael Ferguson said the Liberal government had been upfront about the impacts of implementing the inquiry’s recommendations.
“It will hurt the budget and this will be expensive, but we will need to do it,” Mr Ferguson said.
“I am prepared to cop any and all criticism that results from doing the right thing in our budget responses.”
The budget estimates noted there was a high level of uncertainty around the numbers and abuse liabilities may be higher or lower depending on the number of claims.
Tasmania was projected to record a budget deficit of $298 million in 2023/24 but that figure will balloon to $1.5 billion.
Mr Ferguson, who will deliver the 2024/25 budget on September 12, said the increased deficit was a result of investment in cost-of-living relief measures, recruitment of frontline workers as well as funding for abuse claims spanning 40 years.
An extra $364 million has been spent on “employee expenses”, primarily because of increased hospital demand.
Tasmania’s net debt at June 30 had grown by $200 million to $3.5 billion, according to the report.
Labor Opposition MP Josh Willie said it was very important to provide redress and deliver on inquiry recommendations, but noted abuse claims only accounted for about half the deficit increase.
“Tasmanians will be rightly wondering why they have nothing to show for this budget mismanagement,” he said.
“Our health system is falling apart, education outcomes are lagging the nation.
“We are in the middle of a housing crisis and crucial infrastructure projects like the Spirits (new Bass Strait ferries) are significantly delayed and outrageously over budget.”
Greens MP Vica Bayley said the state’s budget position was further proof it could not afford to build a new Hobart stadium, estimated to cost $715 million.
The 23,000-seat stadium, which must still pass a parliamentary vote, is a condition of Tasmania being granted an AFL licence.
The Liberals, who govern in minority, have pledged to cap the state’s contribution to the stadium at $375 million.
“If they had any sense, the government would take a look at the books … and scuttle the stadium,” Mr Bayley said.
1800 RESPECT (1800 737 732)
National Sexual Abuse and Redress Support Service 1800 211 028
