Following an initial report that exposed the scale of child sex abuse in Tasmania, new revelations indicate that the number of claims has also surged, which is set to significantly impact the state’s finances.
Tasmania’s recently released budget estimates show that the state’s liability could reach $647 million (US$428.83 million) as of June 30, marking a $571 million increase from the previous year.
In June, the state agreed to a $75 million settlement with 129 former Ashley Youth Detention Centre detainees, which is still operational.
The rise in claims comes in the wake of 191 recommendations from a comprehensive inquiry into decades of child sexual abuse within Tasmania’s state care system. The inquiry’s final report in September described the Ashley Centre as a “monster” and a current risk, calling for its closure as soon as possible.
Reacting to this, Premier Jeremy Rockliff expressed his commitment to honouring the victims by implementing meaningful reforms to make Tasmania a leader in child safety within government institutions.
While the commission recommended closing Ashley immediately, the government plans to shut it down by July 2026, and replace it with a therapeutic facilities under a new care model to be introduced next year. The government has chosen Pontville as the preferred location for a new detention centre to replace Ashley, and planning is already underway.
Meanwhile, Treasurer Michael Ferguson acknowledged the financial strain of implementing the inquiry’s recommendations but emphasised the need to prioritise these changes.
He stated, “It will be costly, but it’s necessary, and I’m willing to accept any criticism for making the right choices for our state’s future.”
The budget estimates caution that the actual costs may vary due to uncertainties around the number of claims, with liabilities potentially being higher or lower than projected.
