SPIRIT OF TASMANIA V © Marko Hanninen

Major funding package announced for Spirit of Tasmania

FerryA major funding package for Tasmanian TT-Line has been announced by Tasmania’s government as part of the state budget, with AUD 200 million allocated in 2026/27 and further support planned in later years. The bailout comes as TT-Line struggles with the financial consequences of the delayed and over-budget replacement programme for the two new Spirit of Tasmania vessels, SPIRIT OF TASMANIA IV and SPIRIT OF TASMANIA V.

A parliamentary inquiry heard the company carries substantial debt and high interest costs, while the ferry replacement programme has exceeded original estimates by at least AUD 717 million. This includes a major increase in the cost of the new Devonport terminal, which rose from an estimated AUD 90 million to more than AUD 490 million.

TT-Line chair Ken Kanofski said the funding would significantly reduce the company’s projected debt burden by the end of the decade and place it in a more sustainable long-term position. The government said the support was necessary to secure a vital freight and tourism link for Tasmania and argued the state was financially strong enough to absorb part of the company’s debt.

The two new ferries are currently being held in Victoria’s Port Phillip Bay and are expected to enter service in late October. Last year, TT-Line also received a AUD 75 million equity injection and an increase in its debt limit from AUD 990 million to AUD 1.4 billion.

maj 18 2026