In a year marked by rising living costs and growing community needs, the City of Hobart has delivered a budget that aims to do more with less—balancing financial responsibility with bold investment in the city’s future.
Hobart’s 2025–26 Budget: Investing in Community, Sustainability and the City’s Future
In a year marked by rising living costs and growing community needs, the City of Hobart has delivered a budget that aims to do more with less—balancing financial responsibility with bold investment in the city’s future.
Endorsed this week, the City’s 2025–26 Budget and Annual Plan outlines a $183.9 million operating expenditure, forecasting a modest $1 million surplus. It’s a clear signal that Hobart is committed to long-term financial sustainability while continuing to deliver the services residents rely on.
Lord Mayor Anna Reynolds said the budget was shaped with the community front of mind.
“This budget strikes the right balance—supporting our community, maintaining essential services, and investing in Hobart’s future,” Cr Reynolds said.
“We’ve worked hard to keep rate increases as low as possible, while continuing to deliver the services and programs our residents deserve value.”
The proposed 3.5% increase in rates revenue—just $1.35 per week or $70.22 annually for the average residential ratepayer—is the lowest in Greater Hobart and expected to be among the lowest in Tasmania. Commercial ratepayers will also benefit from a reduced cap on rate increases, down from 10% to 5%, easing the transition to Capital Value rating.
Investing Where It Matters
The budget includes targeted investment across key service areas:
- $18.4 million for managing our parks, reserves, sports facilities and Aquatic Centre;
- $8.6 million for maintaining our roads and footpaths and supporting transport;
- $5.1 million for keeping our city clean;
- $3.9 million for managing household waste, recycling and FOGO services;
- $3.9 million supporting community events and programs;
- $2.6 million for tourism services such as the Tasmanian Travel and Information Centre and Salamanca Market;
- $2.6 million for creative programs;
- $1.4 million for economic development initiatives; and
- $1 million for positive ageing and youth programs.
A further $36.8 million has been allocated to the capital works program, delivering upgrades and renewals across Hobart’s infrastructure. Highlights include:
- $13.5 million for the Greater Hobart Ferry Expansion
- $5.2 million for road renewals
- $1 million each for bridge and footpath renewals
- $980,000 for upgrades at the Doone Kennedy Hobart Aquatic Centre
- $600,000 for redevelopment of Queenborough Oval changerooms
- $3.5 million for plant and equipment, including the start of electrifying the City’s light vehicle fleet
The City will maintain a modest debt level of $35.8 million, with no new borrowings and $3.3 million in existing debt scheduled for repayment.
A Plan for the Future
The Annual Plan for 2025–26 outlines 43 key actions aligned with the City’s strategic vision of working together to make Hobart a better place. Major initiatives include heritage preservation, waste reduction, neighbourhood planning, climate resilience, and sustainable transport.
“This Annual Plan reflects our commitment to thoughtful investment, community wellbeing, and a sustainable future for Hobart,” Cr Reynolds said. “It’s about delivering what matters most to our residents while preparing our city to thrive in the years ahead.”
With a clear focus on community needs and long-term priorities, the City of Hobart’s 2025–26 Budget and Annual Plan sets the stage for a vibrant, inclusive, and resilient future.