Federal Government set to contribute $240 million for AFL stadium in Hobart

The Australian Government is set to commit $240 million for the planned new Hobart Stadium, dwarfing all previous Federal contributions for major venues.

While not confirmed, numerous reports in Australian media since yesterday afternoon have claimed that Prime Minister Anthony Albanese will announce his intention for the upcoming Federal budget to include the monies in the coming days.

The Tasmanian Government’s plan for a new stadium at Hobart’s Macquarie Point has been budgeted at $715 million with the Federal Government’s $240 million to come up on top of $375 million from the Tasmanian Government and $15 million from the AFL.

Paving the way for Tasmania to receive its own AFL licence, the ABC reported that Prime Minister Albanese will likely make the announcement this weekend, to be framed as an urban renewal project for the under-utilised industrial site wedged between the Hobart waterfront and the River Derwent.

Reports claim the Federal funding would be used to facilitate the construction of the stadium by paying for remediation work and housing for low-wage workers such as nurses, which will be part of the precinct.

With financial backing for the venue confirmed, the AFL, which had made having a news stadium contingent on granting an licence for the League’s 19th team, is now expected to announce the expansion of the competition.

In February, AFL Chief Executive Gillon McLachlan had committed to spending $360 million on a Tasmanian team should stadium plans progress.

Modelling the venue of Dunedin’s Forsyth Barr Stadium and Christchurch’s under construction Te Kaha arena, the new venue is expected to have a capacity of around 23,000.

Plans for the venue have changed multiple times since then Tasmanian Premier Peter Gutwein announced it last year - first by changing location, then by becoming an ‘arts and entertainment’ precinct, and finally by becoming an ‘urban renewal project’ in an attempt to achieve commonwealth funding.

Projections suggest the new venue would host seven regular season AFL matches, two AFLW matches, a test cricket match once every four years, four BBL matches, and three international-standard concerts attracting 30,000 people.

Beyond that it is expected to have wider economic benefits.

Tourism Industry Council Tasmania Chief Executive, Luke Martin told the ABC "what I find as an argument that's getting lost in all this, is this talk about 40 major events that this venue might host,

"The Adelaide Oval is used about 40 times a week for events of all types of scale, from business events, conference dinners, major events, all types of events, large and small.

"What Macquarie Point has always been earmarked to be is a place of gathering, a place for people to meet and immerse themselves, and be attracted to Hobart. And that's ultimately what this facility is able to do.

"All the previous models and business cases put forward for that site, have never been able to demonstrate that return to get that government investment."

Projections are for the planning phase to be completed by late 2024, a contractor appointed in early 2025 and construction complete by mid-2028.

With an announcement expected from the AFL on the granting of its 17th licence, many in Tasmania hope the team will start playing in the League before then.

Other venues to look for funding
The Federal Government’s potential commitment to the Hobart venue project is way in excess of its previous largest funding for a stadium - $100 million to the Queensland Country Bank Stadium in Townsville - and may set a precedent for other planned venues, such as the ACT Government's proposed new stadium.

Significantly, the recent funding announcement for venues for the Brisbane 2032 Games did not see any Federal Government money pledge to the redevelopment of the main Olympic stadium - the Gabba. Instead it will be contributing to the Brisbane Live indoor arena development.

Images show the AFL's concepts for the new venue.