Tasmania's Political Crossroads: What the State’s New Government Means for Business and Agencies

Tasmania has entered a new political chapter. Following the July 2025 election, Premier Jeremy Rockliff now leads a minority Liberal government, reshaping the state’s political and economic direction.

For businesses, communicators, and public-affairs professionals, this moment signals both uncertainty and opportunity. Understanding how this government functions — and where it’s headed — will be critical for success.

A Hung Parliament and a Fragile Majority

The 2025 election delivered a hung parliament:

• Liberals – 14 seats

• Labor – 10 seats

• Greens – 5 seats

• Independents and minor parties – 6 seats

With no clear majority, the Rockliff government depends on crossbench support to pass legislation. This dynamic brings policy volatility but also opens the door for greater collaboration and consultation — a reality that favours those who can engage persuasively and strategically.

Fiscal Ambition Meets Financial Constraint

Tasmania’s new budget reveals both bold ambitions and tight fiscal limits.
Net debt is projected to rise from $5.3 billion to $10.8 billion by 2029, driven by major investments including:

• A $1 billion Hobart stadium — a flagship but controversial project.

• Expansions in healthcare, renewable energy, and housing.

• A shift in Aboriginal affairs, replacing treaty plans with a truth-telling and healing framework.

These initiatives create vast contracting and communication opportunities, but under a microscope of public accountability.

The Agency Perspective: Opportunities and Challenges

For agencies like PP Group Agencies, Tasmania’s evolving political climate demands strategic agility and informed positioning.

Opportunities

• Government Communication & Procurement — Infrastructure projects need clear stakeholder communication and transparent messaging.

• Crossbench Engagement — Independents now hold real influence; bipartisan advocacy will be crucial.

• Cultural & Community Engagement — The shift to truth-telling invites new partnerships in storytelling, consultation, and social innovation.

Risks

• Policy Delays as government seeks consensus.

• Fiscal Constraints may slow or shrink programs.

• Political Volatility could trigger rapid shifts in policy or leadership.

Strategic Recommendations

1. Track Crossbench Priorities
   Stay aware of independent and minor-party positions — they shape policy outcomes.

2. Position for Infrastructure Work
   Align your service offerings with Tasmania’s infrastructure and energy investments.

3. Strengthen Government Relations
   Build bipartisan relationships and anticipate policy roadblocks early.

4. Champion Cultural Awareness
   Support truth-telling initiatives through respectful, community-led communication.

5. Stay Adaptive
   In a minority-government climate, flexibility in contracts, campaigns, and messaging is vital.

Looking Ahead: Tasmania’s Political Future

The Rockliff government’s success will depend on its ability to balance ambition with fiscal responsibility — and to maintain confidence in a parliament divided across party lines.

For private-sector partners, this means more consultation, longer timelines, but unprecedented access to influence and participation. Those who combine insight, strategy, and sensitivity to public sentiment will thrive.

About PP Group Agencies

At PP Group Agencies, we specialise in helping businesses, governments, and organisations navigate complex political landscapes. From stakeholder engagement to communication strategy, we turn change into opportunity.