Hobart’s proposed AFL stadium at Macquarie Point is facing significant cost pressures, with an updated price tag anticipated by the end of the year. The Tasmanian Premier has reportedly skirted around questions regarding whether the state’s contribution would be capped at $875 million, according to ABC News.
The 23,000-seat roofed stadium, a cornerstone of Tasmania’s bid for an AFL team, has seen its estimated costs steadily increase since its inception. Originally costed at $715 million in 2022, the project’s total estimated cost had risen to $1.13 billion by late 2025 when Parliament approved its development. As part of that approval, the Tasmanian Government committed to capping its direct contribution at $875 million, with any increase expected to require further parliamentary approval.
However, fresh questions have been raised over the project’s financial viability. Earlier this year, Tasmania’s House of Assembly passed a motion calling on the Government to release revised stadium cost estimates or provide an updated assessment by August 11, amid concerns that rising global construction costs could inflate the price. Premier Jeremy Rockliff has declined to release revised figures while the project remains in a live procurement process, arguing that doing so could compromise the state’s commercial position and weaken negotiations with prospective contractors.
This reluctance has intensified scrutiny, particularly from opposition and crossbench MPs. Tasmanian Treasurer and Minister for Macquarie Point Urban Renewal Eric Abetz, appearing before the Public Accounts Committee, stopped short of guaranteeing the project would remain within current cost estimates or that the Government’s $875 million contribution would not increase. He described the Government’s funding position as its “current position”.
An independent report by economist Nicholas Gruen, released by the Tasmanian government under a deal with the Jacqui Lambie Network, has also highlighted major concerns. The report warned of costs blowing out to more than $1 billion and criticised the project’s location and management. Gruen’s updated modelling, commissioned by anti-stadium group Our Place Hobart, suggested capital costs could reach $1.5 billion, or even $1.75 billion in a pessimistic scenario, well above the government’s $1.13 billion estimate. He also indicated the project would deliver less than 40 cents of benefit for every dollar spent.
Despite these warnings, the construction continues, with the stadium currently priced at $1.13 billion. Industry experts note that instability in global markets, including rising fuel and freight prices, could lead to additional cost blowouts. The Macquarie Point Development Corporation, responsible for the project, acknowledges that market conditions are being monitored as part of the procurement process.
With an updated price tag expected before the end of the year, Eastern Shore residents and Tasmanians statewide will be watching closely to see how the government addresses the escalating financial challenges of this significant infrastructure project.