Prime Minister Anthony Albanese is set to announce the final $240 million needed for a stadium at Hobart's Macquarie Point, paving the way for the state to receive its own AFL licence.
The ABC understands the prime minister 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.
Opponents have complained the redevelopment includes "rushed together" plans for housing on the site of a public boat ramp.
The Tasmanian government has committed $375 million to the $715 million project, with $15 million from the AFL and $85 million in "borrowings against land sale or lease for commercial uses".
It left $240 million for the Commonwealth to fill, sparking vigorous political debate both in Tasmania and federally, and drawing opposition from state Labor, Greens and independents, as well as from the federal Liberals and independent MP Andrew Wilkie.
Mr Albanese himself has had a long association with Macquarie Point, having allocated $50 million in 2012 for remediation works at the site when he was federal infrastructure minister.
Remediation is likely to be complete this year, with former gasworks contamination removed.
Mr Albanese today did not confirm the funding was in next month's federal budget but said he wanted to see development occur on Macquarie Point.
"Hobart is an extraordinarily beautiful city, but at the moment, Mac Point sits there as a bit of an eyesore," he said.
"It's completely under-utilised, and what I've said is that if we can use that site for recreational activity, for housing, for private sector investment, for urban redevelopment in order to improve economic activity in Tasmania … then that would be a positive thing.
"We're working through those issues with the Tasmanian government."
The 23,000-seat stadium proposal first emerged in mid-2022 following a visit to Hobart by AFL chief executive Gillon McLachlan and other senior AFL staff.
Prior to this, former premier Peter Gutwein had announced a 'floating' stadium at neighbouring Regatta Point, but the AFL preferred Macquarie Point.
Premier Jeremy Rockliff has repeatedly claimed an AFL licence was not contingent on the stadium, despite Mr McLachlan stating this in June.
The Tasmanian government could not find any documentation that stated the stadium was a requirement for an AFL licence, but departmental staff confirmed last month it was mainly a verbal agreement with the AFL.
120 apartments set for regatta boat ramp site
The stadium has evolved multiple times since Mr 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.
It has drawn opposition from RSL Tasmania due to its proximity to the Hobart cenotaph, and from Aboriginal community leaders who had earlier been promised a truth and reconciliation park on the site.
Opponents — including Hobart Lord Mayor Anna Reynolds and Mr Wilkie — have now released a map showing the government has plans for an apartment development between the stadium and River Derwent that have not been publicly released.
The plans are based on a letter sent by the Department of State Growth to the council on April 13, with medium density housing at Regatta Point for up to 120 apartments.
Department secretary Kim Evans claimed it would provide housing for health staff for the Royal Hobart Hospital and students at the University of Tasmania School of Medicine, along with releases to the general market.
"… apartments and townhouses … are tiered and follow the stepped topography of the area, to ensure they do not impact sightlines to and from the Hobart Port Tower and Tasman Bridge, and from the Cenotaph," the letter reads.
Mr Evans wrote that the department wants to work with the council on the proposal, with other stakeholders including the RSL, Health Department and Regatta Association, the latter of which was unaware of the plans.
Opponents say they are not opposed to housing, but believe the Regatta Point site would be cut off from the Hobart CBD, and the housing development too small to provide much urban renewal for the area on the river side of the stadium.
It was described as "tokenistic".
Cr Reynolds said the council had been sidelined in the process, having only met with the state government once.
She said the plans had been rushed together.
"We are aware from stakeholders who have been informed — just in the last few weeks — that there will be a proposal to put some apartments around the corner, where the current public boat ramp is, down from the regatta grounds," Cr Reynolds said.
"This is again just this hasty, rather odd planning, where they say, 'Where can we put some housing? Just so we can tick that box for the prime minister.'
"It's been really rather arrogant and ill-considered. It's just sidelined council, it's sidelined local associations, just to push this particular project that wasn't even on the agenda six months ago, until the AFL came into town and said that's where we want a new stadium."
The government also has unknown concept plans for a $60 million high-performance centre and a centre of excellence, which Mr Rockliff sent to Mr McLachlan in August last year.
The government has refused the ABC's request to release these plans.
They were revealed in a series of letters between Mr Rockliff and Mr McLachlan — released under right to information — in which they negotiated for the Tasmanian government to promise an additional $54 million to the team's start-up and ongoing costs.
Mr Rockliff also promised that the state government would not go above 50 per cent funding for the stadium.
But last month, departmental staff told a parliamentary inquiry that it was common for state governments to fund cost overruns themselves.
Tourism sector says there will be broader benefits
Tasmania's tourism sector is hopeful the stadium will create new events opportunities for the state.
The stadium business case gives the project a low cost-benefit ratio of between 0.35 and 0.73, but government planning documents estimated it would host 44 events per year, 28 of them new.
These events would include seven regular season AFL matches, two AFLW matches, a test cricket match once every four years — provided the stadium has no roof — four BBL matches, and three international-standard concerts attracting 30,000 people.
Tourism Industry Council Tasmania chief executive officer Luke Martin said it was not appropriate to focus solely on these events, believing the stadium would have broader benefits.
"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," he said.
"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."
