As Lord Mayor, I’m acutely aware that a city budget is more than a set of numbers. It’s a reflection of who we are, what we value, and how we look after one another.
The City of Hobart’s 2026-27 Budget is, at its heart, a community budget, one that has been carefully shaped to support our residents through challenging times while continuing to invest in the services and infrastructure that make Hobart such a special place to live.
This year, we’ve adopted a responsible and balanced budget with total expenditure of $185.9 million and a modest 3.5 per cent rate increase. I know that any increase is felt by households and businesses, particularly as many are facing rising costs in their day to day lives. The City is no different. Like our residents, we are also impacted by cost of living pressures, with significant increases in the cost of gravel, asphalt, fuel and insurance affecting our core services. That’s why we’ve worked hard to reduce costs and improve efficiency, deliberately keeping our rate rise below Hobart’s inflation rate and broadly in line with local government cost pressures. Striking that balance between affordability and delivering the services our community relies on has guided every decision we’ve made.
At the core of this budget is a simple principle: maintaining and enhancing the everyday essentials that keep our city running smoothly. From the condition of our roads and footpaths, to the cleanliness of our streets and the reliability of our waste services, we know these are the things that shape people’s daily experience of Hobart.
We’ve committed more than $16.2 million to roads and footpaths this year, up from $15.4 million last year, because we know how important accessibility and safety are in helping people move easily around our city. From commuters to pedestrians, parents with prams to people with mobility challenges, well maintained infrastructure underpins connection, access and inclusion.
Keeping Hobart clean and sustainable remains a key priority. We are continuing strong investment in waste and cleaning services, including more than $8.6 million for household waste, recycling and FOGO collections, alongside $4.3 million for city cleaning. These figures are largely consistent with last year’s budget, reflecting our commitment to maintaining high service standards. Importantly, our citywide Food Organics and Garden Organics (FOGO) collection program continues to make a real difference by diverting waste from landfill, reducing emissions and creating valuable compost that supports our local environment. It’s a clear example of how community participation can deliver meaningful environmental outcomes for Hobart.
A community focused budget must also prioritise safety and resilience. This year we’re investing more than $7.3 million in stormwater infrastructure to help protect properties and respond to increasingly unpredictable weather. Ongoing fire trail maintenance remains critical in preparing and protecting our bushland and suburban fringes. Living close to nature is part of Hobart’s identity, but it also comes with responsibility, and that’s something we take seriously.
Supporting connection, wellbeing and participation across our community is equally important. This budget includes more than $1.3 million in community, creative and sustainability grants, alongside nearly $2.5 million in community programs, including targeted support for young people and older residents. These investments translate into real opportunities, whether it’s a young person participating in a youth initiative, a senior engaging in a positive ageing program, or a community group bringing people together around a shared project.
Our creative programs, totalling around $2.48 million, also play an important role. Hobart has a strong and distinctive creative sector, and supporting artists, events and creative industries is about more than economic benefit. It’s about enriching our shared sense of place.
We’ve also continued to invest in the places where our community comes together and stays active. From parks and reserves to sportsgrounds and the Doone Kennedy Hobart Aquatic Centre, these facilities are essential to people’s health, wellbeing and social connection. This year’s allocations, including more than $7.8 million for parks and reserves, $9 million for aquatic infrastructure and $2 million for sportsgrounds, reflect their importance in everyday life.
Of course, a strong community also depends on a healthy local economy. We remain focused on supporting local businesses, creating opportunities and ensuring Hobart continues to be an attractive place to visit and invest. Salamanca Market, kunanyi / Mount Wellington and our broader visitor economy are all central to this story, bringing both economic and social benefits to our city.
This year’s $33.7 million capital works program reflects a challenging reality: external funding from state and federal governments has become more constrained. Despite this, we have increased our own contribution to ensure critical projects can continue. The program includes $560,000 for the installation of two new gross pollutant traps to better protect the Hobart Rivulet, a vital natural asset. A further $1.2 million is earmarked for upgraded spa, sauna and steam room facilities at the Doone Kennedy Hobart Aquatic Centre, enhancing a much loved community space. More than $600,000 will go towards essential stormwater renewal, while $1.2 million has been allocated to replace the synthetic track at the Domain Athletic Centre, ensuring it remains fit for athletes and the wider community alike.
It’s a reminder that while we rely on partnerships, we must also be prepared to invest in our own future.
We’ve also maintained a strong focus on fairness and transparency in how rates are set. Our transition to a capital value based rating system is creating a more equitable approach, and we’re continuing to support those most affected by the change. At the same time, we acknowledge that some costs, such as the state government’s fire and landfill levies, are outside our control but still impact households. Where we can, we’re working to minimise those pressures and support residents through financial hardship assistance and pensioner discounts.
Ultimately, this budget is about people. It’s about maintaining the services residents rely on every day, from waste collection to footpath repairs, and investing in the programs, places and initiatives that help our community flourish. It’s about ensuring Hobart remains liveable, inclusive and resilient, both now and into the future.
We know there is no single solution to the challenges facing our city. But through careful planning, responsible financial management and a strong commitment to our community, this budget delivers a steady and considered path forward. It ensures we can continue to support our residents, invest in our city and build on the things that make Hobart such a great place to call home.
Anna Reynolds
Hobart Lord Mayor