Prime Minister Unveils $24 Million Pledge to Support Tasmanian Paper Mill

The move comes as the government campaigns in the key battleground state of Tasmania where 3 out of 5 seats are potentially up for grabs.

Australian Labor Prime Minister Anthony Albanese debates Liberal Opposition Leader Peter Dutton in Sydney, Australia on April 8, 2025. Jason Edwards-Pool/Getty Images

Prime Minister Anthony Albanese has announced a $24 million funding package to support the transformation of Tasmania’s historic Boyer paper mill near Hobart.

The investment is part of the government’s broader “Future Made in Australia” initiative, aimed at revitalising Australia’s domestic industrial capacity in line with net zero ambitions.

The Boyer mill, which has been operating for over 80 years, is Australia’s only producer of newsprint and a critical employer in the Derwent Valley, providing 310 local jobs.

The funding is aimed at supporting the mill’s decarbonisation and diversify its production.

“Today, my government is committing up to $24 million to secure the long-term viability of this mill,” Albanese said.

“This includes $9 million over the next two years to stabilise its operations during the transition and an additional $15 million in matched funding to support electrification and emissions reduction projects.”

Tasmania a Key Election Battleground

Albanese’s announcement comes as he continues on the campaign trail in Tasmania, following a major policy launch in Perth and a stop in Adelaide.

Tasmania is a competitive state with three of its five electorates set for tight battles between Labor and the Coalition.

Earlier this week, Opposition Leader Peter Dutton also focused on the Apple Isle, unveiling a $124 million regional development package.

A key element of the Coalition’s plan is to establish permanent timber production zones to protect jobs and native forest logging access, alongside a $40 million pledge to boost domestic timber processing and reduce reliance on imports.

“Tasmania needs a government that backs jobs and industries, not one that puts red and green tape ahead of regional livelihoods,” Dutton said during a campaign stop.

The package also includes plans to strengthen the salmon industry, which the Coalition says is threatened by Labor’s environmental regulations and approval delays.

Albanese Stands by Support for Salmon Farming

Labor, meanwhile, is defending its record on Tasmanian jobs and environmental management.

Albanese highlighted bipartisan legislation passed under his government to protect the state’s salmon industry, particularly in Macquarie Harbour, from legal and regulatory uncertainty.

He pointed to a $37 million investment in environmental sustainability measures such as oxygenation to support the industry’s future.

“My government makes no apologies for supporting jobs—especially in regions like this,” Albanese told Parliament. “At the same time, we’re backing sustainability through smart investment, not overregulation.”

To strengthen Labor’s ground game in Tasmania, the party has endorsed long-serving Senator Anne Urquhart as its candidate, leveraging her strong regional connections to try take the seat of Braddon from the Liberal Party.