Tasmanian Budget Strengthens Case for Heavy Construction Materials Plan
Cement Concrete & Aggregates Australia
Key Facts:- Tasmania's infrastructure investment pipeline has reached almost $40 billion, spanning transport, housing, hospitals, renewable energy, and major projects such as the Macquarie Point redevelopment, despite a forecast net operating deficit of $596.7 million in 2026–27.
- CCAA is calling for a coordinated approach to planning and securing heavy construction materials to meet the State's growing infrastructure, housing, and renewable energy demands.
- Supply constraints and planning delays continue to pose risks to affordability and project delivery, with Mineral Resources Tasmania confirming the effective exhaustion of suitable coarse concrete sand in Southeast Tasmania.
- CCAA's Chief Executive Officer Michael Kilgariff highlighted the need for faster approvals, better long-term resource planning, and protection of strategic quarry resources to reduce cost pressures and strengthen supply chains.
- The Government's establishment of Building Tasmania is seen as an important opportunity to better align infrastructure planning, project delivery, and construction materials supply across government.
Cement Concrete & Aggregates Australia (CCAA) says the 2026–27 Tasmanian Budget reinforces the urgent need for coordinated planning to ensure Tasmania can sustainably deliver its growing pipeline of infrastructure, housing and major development projects.
Tasmania’s infrastructure investment pipeline has reached almost $40 billion, with major investment continuing across transport, housing, hospitals, renewable energy infrastructure and major projects such as the Macquarie Point redevelopment and proposed stadium precinct.
At the same time, the Budget confirms Tasmania remains under significant fiscal pressure, with a forecast Net Operating deficit of $596.7 million in 2026–27 and net debt projected to continue rising over the forward estimates before peaking in 2028–29.
CCAA Chief Executive Officer Michael Kilgariff said the scale of the infrastructure pipeline makes efficient delivery, local materials availability and long-term resource planning more important than ever. Many of the issues identified in CCAA’s 2025 Tasmanian Election Policy Priorities document, including quarry approvals, resource protection and long term supply planning, are becoming increasingly important as demand for construction materials continues to grow.
“Tasmania needs a coordinated approach to planning and securing the heavy construction materials required to deliver the State’s infrastructure, housing and renewable energy ambitions,” Mr Kilgariff said.
“The Budget confirms strong ongoing demand for heavy construction materials across transport, housing and major infrastructure projects, but supply constraints and planning delays continue to pose risks to affordability and delivery.”
Mr Kilgariff said recent Mineral Resources Tasmania analysis confirming the effective exhaustion of suitable coarse concrete sand in Southeast Tasmania demonstrates the growing pressures facing the sector.
“That report highlights the growing challenge facing the industry and why faster approvals and better long-term resource planning are becoming increasingly important,” he said.
“As demand for infrastructure and housing continues to grow, Tasmania needs a more coordinated approach to resource planning, approvals and materials supply.”
Mr Kilgariff said the Government’s establishment of Building Tasmania presents an important opportunity to better align infrastructure planning, project delivery and construction materials supply.
“A more coordinated approach across government will help support project delivery, reduce supply chain pressures and improve long-term affordability outcomes for the Tasmanian community,” he said.
"By improving long-term materials planning, protecting strategic quarry resources and supporting timely approvals, Tasmania can help reduce cost pressures, strengthen supply chains and support more affordable housing and infrastructure delivery."
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About CCAA
CCAA is the voice of Australia’s heavy construction materials industry, an industry that contributes $20.7 billion to GDP and supports 112,970 jobs nationwide. CCAA members produce most of Australia's cement, concrete and aggregates, which are essential to the nation’s building and construction sectors.
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Contact: Mitch Itter, Manager Communications | 0431 542 660 | [email protected]