Cost of Tasmania’s Stadium Project Blows Out to Nearly $1 Billion

The government said the cost increase was necessary to ensure that the stadium was fit for multi-purposes.

A ship travels on the Derwent River in Hobart, Tasmania, on Oct. 18, 2022. David Gray/AFP via Getty Images

A multi-purpose stadium project with 23,000 seats in Tasmania has been subject to a cost overrun of $230 million (US$149 million).

On May 27, the Tasmanian government released details of a bill to enable the construction of the Macquarie Point Urban Renewal Project—a major redevelopment initiative aimed at transforming a disused waterfront site in Hobart into a vibrant cultural, scientific, residential, commercial, and tourism precinct.

It now seeks input from the public to facilitate the project’s development.

As part of the consultation, the state government announced that the cost of the Macquarie Point Stadium, a core component of the proposed precinct, had been revised to $945 million, up from the $715 million forecast in 2022.

According to the Tasmanian government, the cost increase was necessary to ensure that the stadium could better meet the requirements for “a wide range of planned uses,” including cricket.

“It also accounts for detailed items such as audio-visual, communications, kitchen, and food and beverage fit-outs,” it said.

The Australian Football League (AFL) has made the construction of a new stadium a non-negotiable condition for granting Tasmania a licence for its own AFL team.

Under the deal between Tasmania and the AFL, the state government will face a $4.5 million penalty if the stadium is not 50 percent built by October 2027 and another $4.5 million if it is not ready to host football matches by 2028.

With the opening of the public consultation, Tasmanian Business and Industry Minister Eric Abetz said it was time for the state to begin building the stadium.

“We have been remediating and preparing Macquarie Point for development for over twelve years, and we know this land is the best available CBD site for a stadium,” he said.

“It is time to draw a line in the sand and provide certainty for our own AFL Team and the enabling infrastructure that is critical to make our team a success.

“The impact the multi-purpose stadium will have on our economy, jobs, and investment is simply an opportunity we can’t miss.”

The consultation will close on June 16, 2025.

Funding for the Project

The Tasmanian government has committed $375 million to the stadium, with the federal government expected to spend $240 million.

AFL has agreed to contribute $15 million. It is understood that the state will fund the remaining $300 million via borrowings.

As the project receives the support of both the Liberal government and the Labor opposition, the bill is expected to pass Tasmania’s lower house in the coming months.

However, to pass the upper house hurdle, the state government will need the support of crossbenchers, some of whom have expressed disapproval of the project.

The Greens’ Response

Following the release of the new costing, the Tasmanian Greens Party criticised the Liberal government for the cost blowout.

“[Premier] Jeremy Rockliff said that he personally would make sure the stadium would be delivered on time and on budget. He mocked opponents and the Greens when we said the stadium’s starting price would be a billion dollars and that it would be all up from there,” the party said in a statement.

“But now he’s confirmed we were right on the money, announcing a revised starting figure of $945 million.

“Yet the premier still won’t admit that he’s broken his promises to Tasmanians not to spend more than $375 million of their money on a stadium.”

The Greens further warned that more cost blowouts would come as other projects, such as the Cradle Cableway, had reported a surge in construction costs.